Hon Hai (Foxconn) shareholders approve record cash dividend payout

Taipei, May 29 (CNA) Shareholders of Taiwan-based manufacturing giant Hon Hai Precision Industry Co. approved on Friday a proposal to issue a record high cash dividend per share of NT$7.2 (US$0.22) on the company's 2025 earnings.

The NT$7.2 cash dividend was the highest since Hon Hai, known internationally as Foxconn, went public on the Taiwan Stock Exchange in 1991.

Based on its 2025 earnings per share of NT$13.61, the dividend payout ratio will be 52.90 percent, marking the seventh consecutive year the company had a payout ratio of higher than 50 percent.

The iPhone assembler and AI server is expected to issue a total of NT$100.93 billion in cash dividends.

In 2025, Hon Hai posted a new high for net profit of NT$189.35 billion, up 24 percent from a year earlier, yielding earnings per share of NT$13.61.

Its consolidated sales of NT$8.1 trillion, up 18 percent from a year earlier, also smashed records.

In its annual report, Hon Hai said that with spending in AI infrastructure expected to grow at a two-digit pace globally this year, it expected to use its strong automated production capabilities and global supply network to support its clients on AI.

Speaking at the annual meeting, Hon Hai Chairman Young Liu (劉揚偉) said AI applications are expected to continue to drive up the company's bottom line, to EPS above NT$20 in two years, after exceeding NT$10 in EPS for the fifth consecutive year in 2025.

Liu described AI as the company's core source of development over the past 10 years as it continuously launching new applications and products that are very competitive in terms of speed, quality, engineering services, flexibility and costs.

Currently, Hon Hai has a more than 40 percent share of the global AI server market, according to Liu.

Liu said Hon Hai's shipments of AI server racks are expected to double in 2026 from a year earlier, as the company capitalizes on more than US$700 billion in capital expenditure by Amazon, Microsoft, Google and Meta this year.

According to Liu, Hon Hai invests more than NT$100 billion a year in research and development, which accounts for 1.5 percent to 2 percent of the company's annual revenue.

Liu said Hon Hai currently has 241 production sites worldwide rolling out a wide range of products, including EVs, an AI data center ecosystem, aerospace products and semiconductors, under a "build, operate, localize" (BOL) model to take on challenges created by "a single country's tariff polices."