Hon Hai Precision Industry Co., commonly known as Foxconn, the largest assembler of iPhones globally, is poised for a significant change in its revenue structure. The company’s chairman recently announced that revenue from AI servers is expected to surpass that from iPhone production within the next two years, potentially reaching this milestone as early as this year.
During his address at Nvidia’s GTC conference in San Jose, California, the chairman emphasized that AI will be Foxconn’s primary focus by 2025. He highlighted the rapidly growing demand for AI servers driven by advancements in AI applications.
The year 2025 has been termed Foxconn’s “first year of AI,” marking the production and shipment of Nvidia’s GB200 servers, along with the expected launch of the GB300 in the latter half of the year. This shift is anticipated to significantly boost revenue.
Liu stated that Foxconn is currently the world’s leading AI server supplier, positioned to capitalize on the expanding AI market. However, he acknowledged that policies from the U.S. government could pose potential challenges.
This transition at Foxconn could indicate a transformative shift for smartphone users as well. With Foxconn having been crucial to Apple’s iPhone production for over a decade, this pivot towards AI technology raises questions about the future of iPhone manufacturing.
While it is hopeful that iPhone production won’t be sidelined, consumers may start to see emerging technologies beyond smartphones. Innovations in AI-powered systems, advanced robotics, and servers are likely to have a more pronounced impact on everyday life, potentially reshaping the future of smart devices, including smartphones.
As Foxconn increases its focus on AI and electric vehicles, users might anticipate not only hardware advancements but also significant improvements in the technology that drives their devices.