Hon Hai reports highest May sales on strong AI demand

Taipei, June 5 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co. on Friday reported its highest sales for May on the back of robust global demand for AI applications.

In a statement, the iPhone assembler, which has intensified AI development to diversify its product portfolio, said it posted NT$859.41 billion (US$27.30 billion) in consolidated sales in May, up 39.57 percent year-on-year, and smashing the previous May high of NT$615.7 billion in 2025.

The May sales figure was also up 3.28 percent from a month earlier, Hon Hai said.

In the first five months of this year, Hon Hai's consolidated sales stood at NT$3.82 trillion, up 31.79 percent from a year earlier.

Hon Hai, also known as Foxconn globally, said its cloud and networking division reported strong year-on-year growth in revenue in May as clients rushed to build up stocks in AI-related gadgets, while three other divisions -- computing, electronics components and smart consumer electronics -- also reported significant growth in the month.

On a month-on-month basis, Hon Hai said, the smart consumer electronics division posted robust growth in sales in May, while revenue generated by the cloud and networking stayed little changed.

In addition, the computing and electronics component divisions reported a slight decline in sales from April.

While the second quarter is a traditional slow season for the ICT industry due to product transitions, Hon Hai said the company's revenues are expected to continue to benefit from an increase in shipments of AI server racks.

Meanwhile, Largan Precision Co., a supplier of smartphone camera lenses to Apple Inc., reported consolidated sales of NT$4.59 billion in May, up 43 percent from a year earlier but down 14 percent from a month earlier.

In May, Largan said, its 20 mega-pixel and higher lenses -- which have higher profit margins -- accounted for 10-20 percent of total sales, while 10-20 mega-pixel lenses made up 50-60 percent, 8 mega-pixel lenses represented less than 10 percent, and other products made up 20-30 percent.

Largan said it expected sales to fall in June as clients had rescheduled their orders but emphasized demand had not declined.

During the January-May period, Largan's consolidated sales rose 15 percent from a year earlier to about NT$25.50 billion.