Foxconn Technology Group (Hon Hai Precision) reported a 17% year-on-year increase in third-quarter net profit to NT$57.67 billion (approximately $1.86 billion), significantly surpassing market expectations of NT$49.88 billion. Revenue grew 11% to NT$2.059 trillion, fueled by surging AI server shipments amid the artificial intelligence boom.

As the world's largest electronics contract manufacturer, Foxconn is accelerating its transformation into high-growth sectors. While historically known as Apple's primary iPhone assembler, the company has now solidified its position as a key player in the AI supply chain, manufacturing AI servers for U.S. tech giants including Amazon and NVIDIA.

AI servers and cloud service products accounted for 42% of total revenue, marking the second consecutive quarter where this segment surpassed consumer electronics as the largest business unit. The company revealed that cumulative AI server revenue exceeded NT$1 trillion by the end of September, driven by breakthroughs in rack shipment volumes and assembly technologies.

Boosted by AI-related optimism, Foxconn's shares have risen over 35% year-to-date, reaching a record high in late October. The chairman recently disclosed a meeting with OpenAI CEO Sam Altman to explore potential collaborations.

Foxconn's board approved a NT$42 billion investment plan last month for equipment procurement to build AI computing clusters and supercomputing centers. In May, the company announced a partnership with NVIDIA to establish an AI supercomputing center equipped with 10,000 Blackwell chips.