Foxconn Industrial Internet (FII), a subsidiary of Foxconn focused on cloud and artificial intelligence (AI) infrastructure, announced a significant year-over-year increase in its second-quarter earnings driven by rising demand for AI-related server products.
The company projected on July 7 that net income attributable to its parent company would reach up to CNY 6.927 billion(US$965.61 million) for the second quarter of 2025, representing an increase of more than 50% compared to the same period last year. This strong performance is expected to contribute substantially to Foxconn's overall consolidated earnings for the quarter.
AI infrastructure drives revenue upside
FII reported strong quarterly results, attributing the performance to an improved product mix, increased volume in mass production, and heightened customer demand for AI data center enclosures. The company's cloud computing revenue in the second quarter rose by over 50% year-over-year, driven by growth in AI server shipments and next-generation GPU infrastructure.
Revenue from AI servers increased by more than 60% compared to the previous year, while sales to cloud service providers grew by over 150%. FII maintained a leading position in core product segments among its key customers, with significant shipment increases in high-performance GPU modules and GPU compute trays.
Broad-based growth beyond AI servers
FII reported consistent growth in its communications and mobile network equipment segment, attributing the performance to a strategic emphasis on smart manufacturing and AI integration, supported by sustained investment in advanced research and development.
The company's precision components division also experienced significant gains, fueled by robust demand for both high-end and cost-effective AI device models from major customers.
In the high-speed network switches sector, revenue from 800G switch products in the second quarter of 2025 tripled compared to the same period in the previous year. This growth was driven by continuous improvements in product design and increasing demand linked to expanding AI deployments.
Profit outlook revised upward on structural momentum
FII emphasized its growing global manufacturing presence and advantages in the upstream supply chain as key factors driving long-term growth. The company also reported stronger client relationships and a larger share of revenue from core accounts.
For the second quarter of 2025, FII anticipates net profit attributable to the parent company to range between CNY6.73 billion (approx. US$938.15 million) and CNY6.93 billion (US$966.03 million), marking a 47.7% to 52.1% increase compared to the same period last year. The net profit for the first half of 2025 is expected to be between CNY11.96 billion (US$1.67 billion) and CNY12.16 billion (US$1.70 billion), reflecting a year-over-year rise of 36.8% to 39.1%.
Article edited by Jack Wu
