Taipei: Hon Hai Precision Industry Co. Chairman Young Liu announced on Wednesday that the company is in discussions with OpenAI regarding a potential collaboration in data center development. Liu disclosed this information during an investor conference, mentioning that further details about the partnership with the ChatGPT developer will be made public at the Hon Hai Tech Day event scheduled for November 21.
According to Focus Taiwan, Liu highlighted Hon Hai’s ongoing collaboration with leading North American cloud service providers and Nvidia Corp. in building a high-speed supercomputer, positioning the company as the first “Nvidia Cloud Partner” in Taiwan. Liu stated that artificial intelligence will play a crucial role in driving Hon Hai’s growth in the coming year, with the company aiming to provide comprehensive AI solutions to enhance its gross margin.
Liu projected that during the current AI surge, Hon Hai’s AI server rack shipments will experience a “high double-digit” growth rate quarter-on-quarter in the fourth quarter. Additionally, AI server revenue is expected to rise sequentially, contributing to increased overall sales in 2025. The company’s consolidated sales for the first nine months of the year reached approximately NT$5.5 trillion (US$177 billion), with AI server revenue accounting for NT$1 trillion. Notably, AI server rack shipments in the third quarter surged by 300 percent from the previous quarter.
Liu emphasized the strong global demand for AI servers, which has significantly bolstered Hon Hai’s cloud and networking division this quarter. Shipments of non-AI servers have also continued to expand. The company plans to further develop a spectrum of AI solutions to increase its global AI server market share, which is anticipated to rise from the current 40 percent next year. Liu expressed optimism about Hon Hai’s growth prospects for 2026.
In its semiconductor operations, Liu announced the completion of Hon Hai’s acquisition of Sharp Fukuyama Laser. The company will continue to develop silicon carbide (SiC) components and provide system-on-chip (SoC) design services for AI applications. Mass production of its automotive microprocessors is set to begin in the fourth quarter, and Hon Hai intends to showcase its advanced driver-assistance system (ADAS) technologies in the first quarter of next year. The company is also in negotiations with European automakers for collaboration on high-efficiency SoC design.
Regarding its electric vehicle (EV) business, Liu stated that Hon Hai’s EV subsidiary, Foxtron Inc., plans to strengthen its cooperation with Yulon Motor’s Luxgen brand to expand market share. Foxtron and Luxgen have jointly launched the n7 EV model, with consumers taking delivery of 7,172 units in 2024 and an additional 2,787 units in the first 10 months of this year. Earlier this year, Foxtron completed the development of several EV models, with some clients already adapting those designs for their products. The company aims to continue expanding its EV operations under Hon Hai’s contract design and manufacturing services (CDMS) business model.