Foxconn expects record revenues from the growth in demand for artificial intelligence.

Foxconn – from assembling iPhones to AI servers

ItemTable of ContentsWho and what does it do?The Taiwanese giant Foxconn (short name “Fujian”) has historically been known as the largest contract manufacturer for Apple products. In recent years, the company has actively expanded its portfolio by assembling server equipment and components for Nvidia.

Goal for 2024Achieve record revenue despite memory shortages and logistical challenges caused by war conflicts. An increase of more than 10 % to $280 billion is expected, surpassing last year’s peak of $253 billion.

1. Growth strategy
1.1 Management confidenceChairman of the Board Young Liu explains prospects with simple factors:

- Cloud giants are doubling capital expenditures, opening new opportunities for suppliers.
- Demand for AI equipment remains the main growth driver.

> “We see significant growth at year‑end. Demand for AI will continue to be a key factor,” said Young Liu.

1.2 Production diversificationThe conflict in the Middle East is deemed “the most serious source of uncertainty.” To reduce risks, Foxconn:

- Expands production and logistics geography (from 133 to 241 sites worldwide over several years).
- Reorients some resources toward new segments – electric vehicles, robots, space data centers.

2. Financial performance
Segment % revenue in 2023 % revenue in 2024 (forecast)Cloud/network services22 %30–40 %Consumer electronics (Apple‑iPhone, MacBook)46 % → 38 %—
- The cloud segment grew from 22 % to 30 % over the year and will account for about 40 % in 2024.
- Consumer electronics is declining, but Foxconn remains Apple’s largest contractor.

3. AI server market
3.1 Production increaseFoxconn plans to double server equipment deliveries both in volume and revenue:

- About 40 % share of the global AI‑server market today.
- Ability to produce up to 2,000 systems per week, though actual figures depend on customer demand.

3.2 Market segmentationGPU solutions (AMD, Intel, Nvidia) – 80 % of the market.
ASIC accelerators (tailored for cloud giants’ needs) – 20 %.

> “Customers expect AI infrastructure turnover to reach $1 trillion in two–three years,” forecasts management.

4. Impact of memory shortages
- Consumer electronics: minimal effect, as Foxconn focuses on high‑end models.
- PC market: stronger impact from memory scarcity compared with smartphones.

5. New business directions
Segment What is plannedElectric vehiclesContract manufacturingHuman‑like robotsComponent productionSpace data centersServers for space operationsAI servicesExpansion of service offerings

6. Last year’s financial results
- Net profit rose 24 % to $5.9 billion thanks to active Nvidia server deliveries.
- Revenue in the fourth quarter fell a few percent due to tax peculiarities, but overall figures remain positive.

ConclusionFoxconn has successfully pivoted from “iPhone manufacturer” to a leader in AI server equipment. With growing cloud investments, production diversification, and geographic expansion, the company is confidently moving toward record 2024 revenue, overcoming memory shortages and global conflicts.