Hon Hai posts highest-ever August sales on AI server rack shipments

Taipei, Sept. 6 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co. (Foxconn) on Friday reported its highest-ever sales for August, driven by strong shipments of artificial intelligence (AI) server racks.

In a statement, the electronics assembler and AI server supplier said it posted consolidated sales of NT$606.51 billion (US$19.91 billion) in August, up 10.61 percent from a year earlier but down 1.2 percent from July.

Hon Hai said robust demand for AI and cloud services fueled growth in its cloud and networking products. It expects sales of its "rack solution" to triple quarter-on-quarter in the third quarter.

Sales in its electronic components segment also grew from a year earlier, but revenue from its computing products and smart consumer electronics divisions declined due to exchange rate factors, the company said.

For the January - August period, consolidated sales rose 16.65 percent year-on-year to NT$4.66 trillion, also a record high for the period.

Looking ahead, Hon Hai projected third-quarter AI server sales to grow 170 percent from a year earlier, outpacing the 60 percent annual growth it reported in the second quarter.

However, the company remained cautious about its full-year results, citing uncertainties from geopolitics, tariffs and currency fluctuations.