Foxconn, formally known as Hon Hai Technology Group, is positioning itself to capture a larger share of the AI server market, which currently stands at approximately 40%. Chairman Young Liu expressed confidence that this share could rise to 45% next year and potentially reach 50% in the next couple of years.
The company anticipates that AI infrastructure will contribute 60% to 65% of its revenue over the next three to five years, excluding edge AI devices. Liu noted that Foxconn's production capacity is fully booked for at least the next 18 months, indicating robust demand primarily from AI model developers and cloud service providers.
In addition to expanding its market share, Foxconn plans to enhance its manufacturing capabilities in the U.S. to better meet local demand, focusing initially on higher-margin products like AI server racks and data center equipment. Liu acknowledged the challenges posed by higher manufacturing costs in the U.S. but suggested that increased production scale could eventually reduce these costs.
He also emphasized the need for careful investment management, warning that overinvestment could jeopardize the company. While Foxconn is prepared to adapt to fluctuations in customer demand, a broader industry slowdown could present significant challenges for both the company and the AI supply chain