Hon Hai Precision Industry Co. has reported a 27% increase in quarterly earnings, exceeding projections. This growth is attributed to strong demand for AI servers, which has helped the company overcome challenges in the global consumer electronics market. The company's net income for the second quarter reached NT$44.36 billion, with an operating profit of NT$56.60 billion and EPS of NT$3.19. Revenue for the quarter grew by 16% year-over-year to NT$1.79 trillion, aligning with market expectations.
Hon Hai expects revenue from AI servers to exceed NT$1 trillion this year, with sales growth of over 50% expected in 2025. The company is expanding its AI data centre presence beyond Asia, targeting the US and the Middle East. Hon Hai is also pursuing opportunities in the electric vehicle sector, including a partnership with Mitsubishi Motors.
Despite positive sales, Hon Hai faces geopolitical challenges, including US-China trade tensions. To mitigate these risks, the company is diversifying its manufacturing base and responding to policy changes in key markets.
