For decades, Foxconn's fortunes were tied to the iPhone. No longer. The world's largest contract electronics maker reported a 35% year-on-year jump in second-quarter net profit to NT$59.97 billion (about $1.86 billion) on Wednesday, beating analyst estimates — and revealed a structural shift inside its business: cloud and networking products, which include AI servers, accounted for 51% of quarterly revenue, crossing the halfway mark for the first time. Consumer electronics, including the iPhone business that made Foxconn famous, fell to 29%.
The numbers show how deeply the generative AI boom has reshaped the hardware supply chain. Foxconn, Nvidia's top AI server assembler, is already preparing production of Nvidia's next-generation Vera Rubin server systems — preparation is expected in the third quarter with shipments targeted for the fourth, and management expects Vera Rubin to become a major product next year. The company is also expanding AI-server manufacturing capacity in Mexico and Texas.
Even the constraints tell the story. Foxconn warned that next year's server volumes will depend partly on available CoWoS advanced-packaging capacity, supplied heavily by TSMC — meaning physical packaging capacity, not demand, could determine how fast the industry can turn AI appetite into working servers.
The results are the latest evidence that AI has moved beyond software: it is now materially changing the revenue mix, factories, and investment priorities of the global electronics supply chain.
