Taipei: Taiwan’s Hon Hai Precision Industry Co., the world’s largest contract electronics maker, announced on Monday an optimistic outlook for its AI server rack shipments, anticipating a “high double-digit” growth sequentially in the first quarter of this year.
According to Focus Taiwan, Hon Hai Chairman Young Liu revealed during an investor conference that AI server rack shipments could potentially double for the entire year of 2026 compared to the previous year. He also stated that the company’s AI portfolio is expected to capture a larger market share in 2026 than in 2025. Currently, Hon Hai holds approximately a 40 percent share of the global AI server market.
A significant factor in achieving these goals is the company’s AI server production hub located in the United States, which is the largest in the country. It is projected to produce 2,000 AI server racks per week by 2026. Liu’s statements coincided with Hon Hai’s report of a record annual net profit in 2025, totaling NT$189.35 billion (US$5.92 billion), marking a 24 percent increase from the previous year.
The company’s consolidated sales set new records, reaching NT$8.10 trillion in 2025, an 18 percent increase from 2024. This growth was largely driven by the strong performance of its cloud and networking division, as well as its smart consumer electronics division. Last year, the cloud and networking division accounted for 40 percent of Hon Hai’s total sales, surpassing the smart consumer electronics division, which held a 38 percent share. The computing division contributed 15 percent, while the electronic component division and other products made up the remaining 7 percent.
Liu noted that despite global economic uncertainties such as tariffs, geopolitical tensions, and currency fluctuations, the demand for AI servers remained robust, fueled by large cloud service providers expanding their capital expenditures. Looking ahead, Hon Hai anticipates strong year-over-year sales growth in its cloud and networking and smart consumer electronics divisions for the first quarter, although the computing division might experience a decline in sales compared to the first quarter of 2025.
Additionally, Hon Hai’s board has approved a plan to issue a cash dividend of NT$7.2 per share for its 2025 earnings, representing the highest payout since its listing in 1991. With 2025 earnings per share of NT$13.61, the payout ratio stands at 52.9 percent.