Foxconn's Global AI Server Market Share Target is 50 Percent

Taiwanese electronics giant Hon Hai Technology Group (Foxconn) aims to increase its market share as the demand for artificial intelligence infrastructure continues. Company Chairman Young Liu announced that the share, which could rise to around 45 percent next year, could reach the 50 percent level within a few years.

The company, also known as Hon Hai Precision Industry and best known as the main assembler of Apple's iPhones, is focusing on artificial intelligence infrastructure. In an interview with CNBC, Chairman Young Liu stated that the current global AI server market share, which is around 40 percent, could rise to 50 percent. Liu expects AI infrastructure to account for 60 to 65 percent of the company's revenues over the next three to five years, excluding edge AI devices.

Stating that the company's production capacity is fully booked for at least the next year and a half, Liu noted that this demand comes largely from AI model developers and cloud service providers, while governments and enterprises have not yet fully adopted the technology. Foxconn aims to expand its manufacturing footprint in the United States to move up the supply chain and better serve the US market. However, due to high production costs, it will initially focus on high-margin products such as AI server racks and data center equipment. Emphasizing that overinvestment could harm the company, Liu added that depending on the expansion of vertical integration, annual spending could exceed 3 to 5 billion dollars.