Hon Hai Precision Industry Co. (Foxconn), the world’s largest electronics contract manufacturer and a key iPhone assembler for Apple, is making a bold bet on artificial intelligence (AI). The company’s chairman, Young Liu (劉揚偉), stated at Nvidia’s GTC 2025 conference in San Jose, California, that AI server revenue will surpass iPhone production revenue within two years—possibly as early as 2025.
This shift marks a significant transformation for Hon Hai, which has relied heavily on iPhone manufacturing for over a decade. As the smartphone market stagnates, the company is accelerating investments in AI servers, electric vehicles (EVs), and smart manufacturing to secure its future.
AI: The Future of Hon Hai’s Business
Hon Hai has identified AI servers as its next big growth driver, capitalizing on the rapid expansion of AI applications and data centers. The company is currently the world’s largest AI server supplier, producing servers for leading technology firms, including Nvidia, Amazon, and Google.
Liu emphasized that 2025 will be Hon Hai’s “first year of AI”, with Nvidia’s GB200 server already in production and the GB300 series launching later this year. These high-performance AI servers, powered by Nvidia’s latest Grace Blackwell architecture, are expected to dominate the AI infrastructure market.
Hon Hai’s Growing Presence at Nvidia GTC 2025
This year, Hon Hai doubled its presence at Nvidia’s GTC conference, sending over 70 engineers and executives to showcase its latest AI-driven technologies.
At the event, the company introduced its GB300 NVL72 AI server cabinet, which features:
- Liquid cooling technology for energy efficiency.
- Omniverse digital twin technology for AI-driven simulations.
- High-density AI chip integration, developed in collaboration with Nvidia.
Liu stated that Hon Hai will continue deepening its partnership with Nvidia, as AI server demand grows exponentially.
Beyond AI Servers: Expanding Into Robotics and Smart Healthcare
Hon Hai is not limiting itself to AI server production. The company showcased several automated robots at the GTC conference, including:
1. Semiconductor Manufacturing Robots
These high-precision robots integrate AI-powered visual recognition and precision motion technology, enabling more efficient and accurate semiconductor production.
2. AI-Powered Nursing Robot: Nurabot
Making its public debut, Nurabot is Hon Hai’s latest innovation in healthcare AI. The robot is designed to:
- Optimize hospital workflows by assisting nurses with administrative and monitoring tasks.
- Improve patient care by using AI to track vital signs and provide real-time alerts.
- Enhance hospital efficiency through AI-driven automation.
The robot has already been deployed at Taichung Veterans General Hospital, with plans to expand its use in Taiwanese hospitals this year.
FoxBrain: Hon Hai’s Own AI Large Language Model
Liu also unveiled FoxBrain, Hon Hai’s first Traditional Chinese AI large language model (LLM). Unlike mainstream LLMs like ChatGPT and Gemini, FoxBrain is tailored specifically for smart manufacturing, electric vehicle development, and smart city applications.
Hon Hai plans to integrate FoxBrain into its factories, EV platforms, and AI-driven business solutions, reinforcing its role as a leader in AI-driven automation.
Challenges and Market Risks
Despite its aggressive push into AI, Hon Hai faces several challenges, including:
- Geopolitical Risks: U.S.-China tensions and potential policy changes under President Trump could impact supply chains and semiconductor exports.
- Competition: Rivals like Quanta Computer and Inventec are also expanding their AI server businesses.
- iPhone Dependency: While AI growth is promising, Hon Hai’s iPhone production still generates billions in annual revenue, and a full transition will take time.
However, Liu remains confident that Hon Hai’s AI investments will pay off, positioning the company as a leader in the next era of technology.
FAQs
Why is Hon Hai shifting focus to AI servers?
Hon Hai is diversifying as smartphone growth slows, with AI servers offering higher margins and long-term demand driven by AI applications and data centers.
What is the significance of Nvidia’s GB300 AI servers?
The GB300 series represents Nvidia’s next-generation AI computing platform, and Hon Hai will be a key manufacturer, strengthening its dominance in AI server production.
What is Hon Hai’s AI nursing robot, Nurabot?
Nurabot is an AI-powered robot designed to enhance hospital efficiency by assisting in patient monitoring and administrative tasks.
What is FoxBrain, and how is it different from ChatGPT?
FoxBrain is Hon Hai’s proprietary AI language model, optimized for smart manufacturing, electric vehicles, and automation, rather than general-purpose conversations.
Will Hon Hai completely move away from iPhone production?
No, but AI servers are expected to surpass iPhone revenue within two years, signaling a major shift in the company’s focus.
