Taipei: Taiwan-based manufacturing giant Hon Hai Precision Industry Co., also known globally as Foxconn, is set to capitalize on the power module expertise of Japan’s Mitsubishi Electric Corp. for the development of artificial intelligence (AI) data center solutions. This follows the signing of a memorandum of understanding (MOU) between the two companies, as highlighted by analysts.
According to Focus Taiwan, the MOU aims to utilize Mitsubishi’s robust position in power module supply, an area where it ranks second globally according to statistics from market information advisory firm OMDIA. Additionally, Mitsubishi leads the market in high voltage direct current (HVDC) technology using voltage source converters (VSC). Analysts emphasize that Hon Hai’s collaboration with Mitsubishi is expected to strengthen its AI infrastructure development, given the critical role of power supply in data centers.
In its official statement, Hon Hai expressed that the partnership is designed to integrate the expertise and networks of both companies, thereby facilitating the global distribution of energy-efficient and reliable AI data center solutions. The joint efforts aim to address broader social issues such as sustainability by developing new values, solutions, and business models beyond the AI data center domain.
Hon Hai has been actively expanding its AI development initiatives to diversify its product offerings. The company acknowledges Mitsubishi’s extensive business operations, which include social systems, energy systems, defense and space systems, factory automation, automotive equipment, building systems, air conditioning, home appliances, digital innovation, and semiconductors.
Hon Hai also reported a record high in monthly consolidated sales for October, amounting to NT$895.71 billion (US$28.89 billion), a significant increase of 11.29 percent from the previous year and 7 percent from the prior month. The growth is attributed to robust demand for AI servers and a rise in computing device shipments due to new product launches and increased client inventories ahead of the year-end buying season.
Year-to-date, Hon Hai’s consolidated sales have risen 15.55 percent to NT$6.39 trillion compared to the previous year. The company plans to hold an investor conference to discuss its third-quarter results and provide guidance for the fourth quarter and the entire year of 2025.
In the third quarter, Hon Hai’s consolidated sales reached NT$2.06 trillion, marking a 14.47 percent increase from the previous quarter and a 10.99 percent rise year-on-year, driven by strong shipments in cloud and networking devices.