Nvidia Partner Hon Hai Posts 10.6% YoY Sales Growth, Expects Q3 Growth Amid AI Demand

Nvidia's major server production partner, Hon Hai Precision Industry, reported a 10.6% YoY increase in revenue for August to $19.8 billion. The Taiwanese company expects Q3 sales to grow sequentially and YoY, driven by strong demand for AI infrastructure in the US. Hon Hai is diversifying its manufacturing footprint away from China and expanding capacity in the US to avoid tariffs.

Nvidia Corp.'s major server production partner, Hon Hai Precision Industry Co., reported a 10.6% year-over-year (YoY) increase in revenue for August, totaling NT$606.5 billion ($19.8 billion) [1]. The Taiwanese company, also known as Foxconn, attributed the growth to strong demand for AI infrastructure in the US. Hon Hai expects third-quarter sales to grow both sequentially and YoY, signaling a continued reliance on the AI boom to offset volatile iPhone sales.

Hon Hai's expansion into the US is part of a broader strategy to diversify its manufacturing footprint away from China. The company aims to navigate geopolitical shifts and avoid potential tariffs by shifting production to the US. It plans to add more AI server production in Wisconsin and Texas, where it already operates campuses [1].

The company's revenue still depends significantly on Apple Inc., which accounts for a substantial portion of its revenue through the assembly of iPhones and other gadgets. However, the company is increasingly focusing on AI servers as a growth engine, with expectations that sales of servers will more than double this quarter while consumer electronics sales dwindle [1].

Nvidia's support and the AI boom have positioned Hon Hai as a key player in the AI infrastructure market. The company's ability to diversify its revenue streams and adapt to geopolitical shifts will be critical in maintaining its growth trajectory.

References:
[1] https://www.bloomberg.com/news/articles/2025-09-05/nvidia-partner-hon-hai-sales-rise-on-sustained-ai-demand