Taiwanese manufacturer Foxconn generated more revenue from the production and sale of AI servers than it did from consumer electronics, including iPhones, the company’s Q2 2025 earnings revealed.

For the first time in Foxconn’s history, its Cloud and Networking Products division posted higher revenue than its Smart Consumer Electronics group, rotating CEO Kathy Yang told investors. Cloud and Networking accounted for 41 percent of revenue in the second quarter, with the consumer division making up 35 percent.

Total revenue for the quarter was $59.73 billion, up 16 percent year-over-year (YoY).

Foxconn, officially known as Hon Hai Technology Group, is the largest manufacturer of Nvidia servers, and Yang said the company recorded a 60 percent YoY growth in sales of AI servers, and that in the third quarter, the company was forecasting revenue growth from AI servers to be up 170 percent, with sales expected to increase by 300 percent. Full-year revenue from the sale of AI servers is predicted to be around $33bn.

“With the gradual increase in volume of AI server racks and the continued strong demand for general-purpose servers this year, we expect this product category to maintain strong growth and remain our largest revenue driver this year,” Yang said, adding that the trend towards modular data centers will further help to accelerate the shipments of AI server racks.

In July 2025, Foxconn announced it was partnering with fellow Taiwanese company Teco Electric and Machinery for the development of such modular data centers.

“We are very confident that Hon Hai can be one of the leaders of this AI tide,” Yang said.

Earlier this month, it was revealed that Foxconn had sold a former General Motors factory in Lordstown, Ohio, to SoftBank. While some initial reports said the site would be converted into a manufacturing plant for cloud computing hardware and AI servers, it has since been rumored that the facility could instead be used to host a Stargate data center.

SoftBank has long been trying to involve Foxconn in the $500 billion Stargate data center project, which the Japanese investment company is currently undertaking with OpenAI, Oracle, and Abu Dhabi's MGX, reports claim.