Hon Hai reports record high Q2 sales on AI boom

Taipei, July 6 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co. on Sunday posted its strongest ever second-quarter sales, saying its cloud and networking division benefited from solid demand for AI servers.

In a statement, Hon Hai said it posted NT$2.51 trillion (US$78.35 billion) in consolidated sales for the April-June period, an increase of 39.83 percent from a year earlier and 18.02 percent from the previous quarter.

Hon Hai said its cloud and networking division benefited from high demand for AI products, recording strong year-on-year sales growth in the second quarter.

Its electronic components, computing, and smart consumer electronics divisions also reported significant revenue growth in the second quarter, said Hon Hai, an iPhone assembler also known globally as Foxconn.

For the month of June alone, Hon Hai said, it generated NT$821.8 billion in consolidated sales, an increase of 52.11 percent from a year earlier but down 4.38 percent from May. The company's four major divisions all reported robust year-on-year growth in June, its data showed.

In the first half of the year, Hon Hai said, its consolidated sales totaled NT$4.64 trillion, up 34.99 percent from a year earlier, as its cloud and networking, and electronic components divisions posted strong year-on-year growth, the data indicated.

Hon Hai, which has been focused on AI development to diversify its product portfolio, currently holds about a 40 percent share of the global AI server market.

Looking ahead, Hon Hai said Sunday that its third-quarter sales are likely to also show quarterly and year-on-year growth, as global demand for AI server racks is expected to remain solid during that period.

In addition, the second half of the year is usually the peak season for the information and communications technology industry, which will help drive Hon Hai's third-quarter sales growth, the company said.

Meanwhile, Largan Precision Co., a supplier of smartphone camera lenses to Apple Inc., on Sunday reported second-quarter consolidated sales of NT$13.67 billion, down 12.09 percent from the first quarter.

However, the company said, its consolidated sales for the first half of the year rose 11.26 percent from a year earlier to NT$29.21 billion.

For the month of June, Largan posted NT$3.71 billion in consolidated sales, a decrease of 10.46 percent from a year earlier and a 19.18 percent decline from the previous month.

It was Largan's lowest monthly consolidated sales figure since May 2025, when it recorded sales of NT$3.24 billion, the company said, attributing the decline to its clients' decisions to reschedule shipments.

Largan has scheduled an investor conference for Thursday to detail its second quarter results and give guidance for the third quarter.

According to market analysts, Largan's efforts to enter the co-packaged optics (CPO) business to tap into the AI boom are likely to be highlighted at the investor conference.