Hon Hai Precision Industry Co., known globally as Foxconn and the world’s largest contract electronics manufacturer, reported a 35.5% revenue increase for January 2026 to NT$730 billion, approximately $23 billion, driven by demand for artificial intelligence servers, according to its monthly filing in Taiwan.
The Taiwan-based company achieved this result following a record-breaking fourth quarter in 2025, when sales rose 22% year-over-year to NT$2.6 trillion. December 2025 revenue set a monthly record at NT$862.86 billion, marking a nearly 32% increase compared to the same month in the previous year. These figures reflect sustained strength in key business segments at the close of 2025.
Foxconn anticipates robust performance in the first quarter of 2026, despite it being a traditional off-season period for information and communications technology products. The company cited ongoing increases in shipments of AI server racks and improvements in smart consumer electronics as key factors. In its monthly revenue report, Foxconn stated that first-quarter results are expected to reach near the upper end of the past five-year range.
The cloud and networking products division, which encompasses Foxconn’s AI server manufacturing operations, now represents the largest revenue contributor at 42% of total sales. This division serves as the primary engine of the company’s growth. Hyperscale cloud providers, including Amazon, Microsoft, and Alphabet’s Google, continue to allocate billions of dollars toward expanding their artificial intelligence infrastructure, which directly boosts demand for Foxconn’s AI servers.
For the entire year of 2025, Foxconn recorded annual sales surpassing NT$8 trillion for the first time in its history, an 18% rise from 2024 levels. This milestone underscores the scale of operations for the contract manufacturer, which assembles products for major technology firms worldwide.
Analysts forecast approximately 28% sales growth for Foxconn in the quarter ending March 2026. Year-over-year comparisons face potential distortion due to the Lunar New Year holiday falling on February 17, which affects seasonal patterns in business activity.
Foxconn has expanded its collaboration with Nvidia through the development of a $1.4 billion supercomputing center in Taiwan, scheduled for completion in the first half of 2026. This facility will support advanced computing needs aligned with AI applications.
At a November investor conference, Foxconn Chairman Young Liu conveyed confidence in the outlook, stating the company is “very optimistic” about AI-driven demand in 2026. He described artificial intelligence development as “just at the beginning,” highlighting the early stage of expansion in this sector.
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