Taiwan's Hon Hai reports highest sales for November

Taipei, Dec. 5 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co. on Friday reported the highest-ever November sales, with shipments of artificial intelligence server racks on the rise as the company intensified its efforts in AI application development.

In a statement, Hon Hai, also known as Foxconn globally, said it posted NT$844.28 billion (US$27.01 billion) in consolidated sales in November, up 25.53 percent from a year earlier.

The November sales, however, fell 5.74 percent from a month earlier.

On a year-on-year comparison, Hon Hai said, its cloud and networking division continued to benefit from strong demand for AI server racks in November, while its electronics component division also reported solid growth as buyers were keen to build up inventories.

The company added that sales in its smart consumer electronics segment were largely unchanged, as growth was offset by a stronger Taiwan dollar, while its computing division recorded a decline in revenue.

In the first 11 months of this year, Hon Hai's consolidated sales totaled NT$7.24 trillion, up 16.63 percent from a year earlier.

Hon Hai said it was upbeat about the fourth quarter, which is a traditional peak season for the information and communications technology industry.

In an investor conference held in mid-November, Hon Hai Chairman Young Liu (劉揚偉) said AI server racks are forecast to grow at a "high double-digit" pace quarter-on-quarter in the fourth quarter.

He added that AI server revenue is also expected to increase sequentially in the same period, contributing to higher overall sales in 2025.