Hon Hai expects AI server revenue to surpass iPhone within 2 years

San Jose, U.S., March 18 (CNA) The chairman of iPhone assembler Hon Hai Precision Industry Co. said Tuesday that the company's AI server revenue will "certainly" exceed that of its iPhone production revenue within two years, with the possibility of achieving this milestone as early as this year.

At Nvidia GTC, an AI conference taking place in San Jose, California, Young Liu (劉揚偉) said that artificial intelligence (AI) will be the company's primary focus this year, as rapidly advancing AI applications are driving up demand for AI servers.

Liu noted that 2025 represents Hon Hai's "first year of AI," with the production and shipment of Nvidia's GB200 and the anticipated launch of the GB300 in the second half of the year positioning Hon Hai for strong revenue growth.

He said that Hon Hai, better known as Foxconn globally, is currently the world's largest AI server supplier, and expects to be the primary beneficiary of growing AI markets, although U.S. President Donald Trump's policies remain a key uncertainty.

Liu acknowledged concerns over finding a product of comparable scale as Apple's iPhone -- which has been Hon Hai's largest product line for over a decade -- as smartphone market growth slows. He said the company has identified AI and electric vehicles (EV) as key markets.

Hon Hai's presence at the five-day tech conference was twice as large as last year, with over 70 engineers and executives in attendance.

At its conference booth this year, Hon Hai debuted its next-generation GB300 NVL72 server cabinet.

Developed in collaboration with Nvidia, the server features advanced superchip ecosystems, liquid cooling technology and Nvidia's Omniverse digital twin technology, Hon Hai said.

The company also showcased several automated machines at its conference booth, including composite robots that integrate high-end visual recognition and precision motion technologies for use in the semiconductor industry.

Hon Hai's AI nursing robot, Nurabot, also made its first public appearance at the conference.

The company said Nurabot is designed to optimize medical workflows and improve patient care quality, with early deployments at Taichung Veterans General Hospital and plans for a broader rollout to Taiwanese partner hospitals later this year.

In addition to hardware, Liu said Hon Hai's first Traditional Chinese AI large language model, FoxBrain, is expected to play a key role in advancing the company's smart manufacturing, EV and smart city platforms.