Foxconn Technology Group, the world’s largest contract electronics manufacturer and Apple’s primary iPhone assembler, reported a 15.8% year-on-year increase in revenue for June, driven by robust demand for AI servers and Apple iPhones.
The Taiwanese giant, officially known as Hon Hai Precision Industry Co., announced that its consolidated revenue for June 2025 stood at NT$490.7 billion (approximately $15.1 billion), marking a significant rebound from previous quarters. This double-digit growth reflects a global surge in demand for artificial intelligence-powered data center hardware, as well as continued strength in consumer electronics.
AI Server Demand Accelerates
One of the major growth drivers for Foxconn in recent months has been the booming demand for AI servers. As tech companies ramp up investments in generative AI and machine learning, there’s a growing need for high-performance computing infrastructure.
Foxconn, a key supplier to major cloud providers and chipmakers, has benefitted from this industry shift. The company manufactures AI server components and full systems, including those integrated with powerful chips from NVIDIA, AMD, and Intel.
According to Foxconn, its cloud and networking division recorded its strongest growth ever in Q2 FY25, led by AI server shipments. Executives noted that the trend is expected to continue through the second half of the year, as enterprises scale up their AI infrastructure globally.
iPhone Sales Also Power Growth
Foxconn’s other major growth engine is its long-standing partnership with Apple Inc.. The company is the main assembler of iPhones, and with the success of the iPhone 15 series, along with early production activity for the upcoming iPhone 16, Foxconn saw strong sales in its smart consumer electronics division.
Analysts say Apple’s continued momentum in premium smartphone markets, especially in the U.S., China, and India, has boosted Foxconn’s production volumes. Seasonal inventory buildup and component pre-orders ahead of the iPhone 16 launch are also contributing factors.
Diversification and Global Expansion
In addition to AI and smartphones, Foxconn is diversifying its business into electric vehicles (EVs), semiconductors, and smart manufacturing. The company has recently expanded its EV production plans in the U.S. and Southeast Asia, seeking to reduce reliance on China amid geopolitical tensions.
Foxconn also continues to invest in automation and robotics, aiming to future-proof its operations and improve production efficiency across facilities in India, Vietnam, and Mexico.
Strong Outlook Ahead of Key Product Launches
With multiple tailwinds—including the AI server boom, new iPhone production cycles, and broader tech sector recovery—Foxconn has issued an optimistic outlook for the second half of 2025. The company expects continued revenue growth supported by strong global demand for AI hardware and premium mobile devices.
Conclusion
Foxconn’s impressive 15.8% revenue growth in June underscores its strategic positioning in two of the world’s fastest-growing tech sectors: artificial intelligence and premium smartphones. As enterprises and consumers alike double down on AI and iPhones, Foxconn is emerging as a critical supplier powering the next wave of global innovation.
