Foxconn aims to increase its share of the global artificial intelligence server market from about 40% to as much as 50% within the next two years. Chairman Young Liu said the company expects to reach roughly 45% next year before potentially gaining further ground.
The Taiwanese manufacturer’s production capacity is fully booked for at least 18 months, reflecting demand from AI developers and cloud computing providers. Foxconn expects servers, racks and related infrastructure to account for 60% to 65% of its revenue within three to five years. That estimate does not include edge AI devices, which process workloads on local hardware.
To support its expansion, Foxconn plans to increase manufacturing capacity and take on more roles across the data-centre supply chain. The company also intends to expand its US operations beyond assembling finished products, focusing initially on higher-margin equipment such as AI server racks and data-centre infrastructure amid higher operating costs.
Foxconn currently allocates between $3 billion and $5 billion a year to AI activities, an amount that could rise as it expands. Liu said higher production volumes could eventually help reduce costs, though that would require sustained investment.
The company expects weaker orders from some customers could be offset by stronger demand from others. A broader reduction in spending across the AI industry, however, would pose a greater challenge to manufacturers throughout the supply chain.
Sources: TechRadar.