Foxconn’s Apple Era Fades as AI Servers Fuel Taiwan Tech Sector

Taiwan’s Foxconn, once synonymous with assembling millions of iPhones, is no longer primarily an Apple supplier as it pivots to capitalize on the AI boom, Wen-Yee Lee reported for Reuters.

Foxconn’s dependence on iPhone assembly has long been seen as a risk by investors. (Photo: Foxconn)

For the first time, Foxconn’s revenue from AI servers and other cloud and networking products—including for major customer Nvidia—surpassed sales from consumer electronics such as iPhones in the second quarter.

The milestone marks the culmination of a years-long shift that has reshaped Taiwan’s tech industry.

Foxconn’s dependence on iPhone assembly has long been seen as a risk by investors, as demand growth for new models has slowed nearly two decades after the smartphone’s debut.

Since taking over in 2019, Chairman Young Liu has pushed to diversify into electric vehicles, semiconductors, and AI hardware.

While EV and chip projects have yet to meaningfully boost revenue, Foxconn’s early bet on AI servers has paid off, making it Nvidia’s largest server manufacturer—a position cemented by the global surge in demand following the rise of ChatGPT in late 2022.