TAIPEI, TAIWAN – Hon Hai Technology Group (Foxconn) today announced December quarter revenue reached NT$2.13 trillion ($6.5 billion), rising 15% year-over-year.

Gross profit reached NT$131 billion, up 15.7% from the same three months a year ago; operating net profit was NT$64.5 billion, showing an on-year gain of 31.8%; however net profit, at NT$46.3 billion, fell 12.8% for the same time period. Gross profit margin, operating profit margin and net profit margin were 6.15%, 3.03% and 2.17% respectively, compared to 6.12%, 2.64% and 2.87% in the same period a year ago, showing an increase in two of the three margins that indicated an improvement in profitability of the core business.

For the full year 2024, net profit reached NT$152.7 billion. Revenue totaled NT$6.86 trillion, up 11.3% on-year. Gross profit reached NT$428.9 billion, up 10.6%; operating net profit, at NT$200.6 billion, was up 20.5%; while net profit rose 7.5% to NT$152.7 billion for the same time period. Gross profit margin, operating profit margin and net profit margin stood at 6.25%, 2.92% and 2.23% respectively, compared with 6.30%, 2.70% and 2.31% in the previous year.

 In a statement, the company said that despite significant changes in global tariff policies, geopolitical risks and monetary policies, the outlook for 2025 is for strong growth. The company also shared key developments around its three major smart platforms, as well as on AI and EV in 2025.

Young Liu, chairman of Hon Hai Technology Group (Foxconn), said fourth quarter revenue grew strongly both on-quarter and on-year. The record high NT$6.86 trillion in last year’sannual revenue, came as three of four primary product segments – cloud and networking; computing; components and others – all achieved strong growth. The actual performance exceeded expectations.

Looking ahead for 2025, Liu said the full-year operating outlook will be for strong growth, and that first quarter performance will also turn in strong growth compared to the same period last year. The company is now positioned as a technology manufacturing platform service provider. The three major platforms – Smart Manufacturing, Smart EV, Smart City – are the important foundation for developing various technologies and businesses. These platforms are based on key components, modules, systems, software and other fundamental capabilities we have soundly established. In the future, Foxconn will introduce more generative AI to make them even more powerful.

Foxconn will work with global Tier-1 partners to jointly develop and create generative AI solutions or develop large language models in-house to introduce into its three major intelligent platforms. By doing this, it will improve overall operational efficiency, and also enhance competitive advantage. Foxconn is using AI to produce AI; in Japan it has built a fully automated mobile phone assembly line. 

In the face of market concerns regarding the impact of geopolitics and tariffs on the Group's operations, Chairman Liu said overall ICT industry demand is generally stable this year. In response to changes, we will maintain close contact with our customers and due to our comprehensive global layout make timely adjustments. Through vertical integration, a diversified footprint and close cooperation with customers, the Group will maintain its market leading position.

Chairman Liu predicted that 2025 will be the first year of AI. Global demand is being sustained for AI computing infrastructure, and the capex of major CSPs will maintain strong growth this year. Looking at the first quarter, Foxconn’s AI server revenue is expected to grow more than 100% both quarter-on-quarter and year-to-year. As the GB200 enters mass production, we believe AI server revenue will improve quarter by quarter.

Looking at the full year, AI server revenue will reach the trillion-dollar scale, in local currency terms, accounting for more than half of the Group’s total server share. Foxconn has beenan important co-development partner in new products with major customers, ensuring that we can participate in next generation upon next generation of product development.

The company also believes that the technical methods used by DeepSeek will accelerate the popularization of AI servers for inference, thereby driving an increase in overall computing power demand. For large enterprises and CSPs, high-end AI servers and complete network and storage architectures are still indispensable, so demand for high- end AI servers will continue to grow. In the long run, as the development of edge AI gradually matures, there is likely to be more demand for upgrading personal devices.

AI server training takes a long time. During this period, if there is a failure in the AI server, it will have a great impact on the training time or even the results. Foxconn has always been in a leading position in terms of quality stability. A 40% market share is our most conservative target. We are confident that we can continue to strive for a higher market share.

Regarding collaboration with Japanese automakers, Liu said he anticipates “contract signing to be completed in one to two months’ time.” During the second half of the year, the Model B and the North American variant of the Model C are expected to enter mass production, while the manufacturing factory for the electric bus is scheduled to complete certification in the third quarter, expanding shipment capacity.

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