(Bloomberg) – Hon Hai Precision Industry Co., a leading server production partner at Nvidia Corp., reported solid monthly sales growth. Signal demand for AI infrastructure remains intact in the US.
Revenue for August was $600 billion ($19.8 billion), an increase of 10.7% year-on-year. Analysts averaged 16.4% in third quarter sales. Hon Hai said in a statement that he hopes sales will grow in sequential year-on-year.
Taiwanese companies rely on Apple Inc. for a significant portion of their revenue by assembling gadgets for US clients, including iPhones.
Hon Hai, also known as Foxconn, expects sales to more than double this quarter. The contrast emphasizes its reliance on the AI boom to offset the sale of volatile iPhones.
The world's largest electronics manufacturer is diversifying its manufacturing footprint from China as it seeks to navigate the geopolitical changes of earthquakes. Already in May it cut its full-year revenue guidance and cites potential fallout from the US-China trade war. President Donald Trump has since declared a plan for a 100% tariff on semiconductor imports, but has pledged to exempt businesses moving production to the United States.
With support from Apple and Nvidia, Hon Hai is expanding its US capabilities. This keeps in mind Trump's call to avoid tariffs by moving production to the US. This adds production of AI servers in Wisconsin and Texas, and existing campuses are operating, executives said.
Read: foxconn operates SoftBank StargateAI server site in Ohio
More stories like this are available at bloomberg.com
