Hon Hai Precision Industry (Foxconn) achieved record-high profits and cash dividends in 2025. Foxconn chairman Young Liu stated that the company's growth momentum will continue in 2026, driven by strong demand for artificial intelligence (AI) servers. The company is also simultaneously launching the next phase of its five-year AI-centered transformation plan.
Liu highlighted that Foxconn posted record-high revenues for the fourth quarter and full year of 2025, showing that the company was able to maintain steady growth despite uncertainties in the global industrial environment. Growth was primarily fueled by robust performance in the AI server, cloud, and networking product lines. Notably, revenue from cloud and networking products surpassed that of consumer smart products for the first time, becoming the largest product category, signaling that the group's business focus has shifted in line with industry demand.
Looking ahead to 2026, Liu noted that major global cloud service providers continue to significantly increase capital expenditures, sustaining strong demand for AI servers. As Foxconn gradually ramps up related production capacity, it is well-positioned to seize new orders and expansion opportunities.
Regarding consumer smart products, although the market is concerned about memory supply constraints and price volatility, Liu said that since the customer product mix is mainly composed of higher-priced models, the overall impact is limited, and the outlook for 2026 remains optimistic.
In response to investor concerns about long-term profitability, Liu said Foxconn's board has approved a plan to enhance corporate value, incorporating operating margin and return on equity as core performance metrics, aiming to deepen operational efficiency through vertical integration and economies of scale.
Liu also revealed that Foxconn's five-year transformation strategy will focus on AI as the core driver. The plan advances three main pillars: Foxconn 1.0 for operational excellence, Foxconn 2.0 for intelligence-driven growth, and Foxconn 3.0 for platform value creation. The goal is to evolve Foxconn from a key global technology manufacturing partner into an industry platform leader in the AI era.
Article translated by Eifeh Strom and edited by Jack Wu
