Stated share and timing targets
Hon Hai Precision Industry, also known as Foxconn, wants to extend its position in the artificial intelligence server market. Chairman Liu Young-way, in an interview reported by CNBC and relayed by IT之家, indicated that the group currently holds about 40% of the global share of this market. His forecast is to rise to about 45% over the next year and to be able to reach 50% within a few years.
The news is not only the target number, but the fact that the company is making it explicit while AI infrastructure has already become an alternative growth engine to iPhone assembly, the business that has historically defined Foxconn. The statement, however, remains a company forecast and not independently verified market data.
Full order books and growing share of revenue
According to Liu, demand for AI infrastructure remains strong and production capacity is said to be already committed for at least a year and a half. Orders would come mainly from AI model developers and cloud service providers, while government customers and enterprises would not yet have adopted the technology on a large scale.
The chairman also estimates that, over a three-to-five-year period, AI infrastructure could generate 60-65% of the revenue attributed to Foxconn. The figure excludes so-called end-side devices, meaning those that run artificial intelligence and machine learning algorithms locally. It is a relevant projection because it shifts the group's center of gravity from consumer electronics toward supplies destined for data centers.
US expansion and caution on investments
In addition to market share, Hon Hai intends to expand production in the United States and move up the supply chain. Because US manufacturing costs are higher, the initial phase will focus on higher-margin products, such as AI server racks and data-center equipment. Liu believes that increasing local production volumes could help reduce costs over time.
The company thus aims to move from supplying servers and racks to a broader role that includes entire data centers and computing services. At the same time, Liu warns that growth in the AI market does not justify unlimited investment: annual spending in the sector will exceed the initially projected $30-50 billion, depending on the degree of vertical integration, but the company intends to maintain tight control because, he said, excessive investment can harm the company.
On the risk of a spending cut by a major customer, Liu argues that an isolated decline could be offset by other business areas. A slowdown in demand across the entire sector, however, would put Foxconn and the entire AI supply chain under pressure. The actual evolution of the announced shares and the impact of US production on margins remain to be verified.
