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2025-09-05 02:21:27

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Hon Hai Precision Industry Co. reported August sales of NT$606.5 billion, marking a 10.6 per cent increase year-on-year. The Taiwanese manufacturer, a key production partner for Nvidia's AI-enabled servers, anticipates both sequential and year-on-year growth in third-quarter revenue, underpinned by a sharp rise in cloud and networking product shipments. Hon Hai's August sales climb 10.6 per cent amid AI demand reflects continued strength in AI infrastructure spending.

Growth in August follows a slower expansion in July, when sales rose only 7.25 per cent year-on-year to NT$613.9 billion-the weakest performance since January-suggesting that tariff issues and policy uncertainty weighed on demand. Yet, cumulative revenue through August reached NT$4.66 trillion, up 16.65 per cent on the year.

Hon Hai's second-quarter results reinforce this momentum. Group net profit surged 27 per cent year-on-year to NT$44.36 billion, with AI server demand cited as the primary growth driver. Speaking at an investor conference, rotating CEO Kathy Yang forecasted that AI server revenue will surge more than 170 per cent year-on-year in the third quarter, with rack shipments tripling quarter-on-quarter. AI servers now represent over half of Hon Hai's server sales.

On a broader scale, the company's full-year AI server-related revenue remains projected to exceed NT$1 trillion-a testament to durable structural demand as the global technology sector pivots toward AI infrastructure.

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