Hon Hai: AI Rack Shipments to Double, CPO Switch Mass Production to Begin in Q3
Hon Hai announced today that its group's AI server sector is growing strongly this year. AI rack shipments in Q2 are estimated to grow by a high double-digit percentage quarterly, with annual shipments more than doubling. Mass production of 800G+ switches is set for a twofold increase, and silicon photonics CPO switches are expected to start mass production in Q3, with annual CPO switch shipments reaching ten thousand units.
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- 📰 Published: May 14, 2026 at 17:16
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(Central News Agency, Taipei, 14th) Hon Hai stated today that its group's AI server sector is experiencing strong growth this year. AI rack shipments in the second quarter are estimated to grow by a high double-digit percentage quarterly, and AI rack shipments for the year are expected to more than double. The annual growth for 800G and above switches will also double. Silicon photonics CPO switches are projected to begin mass production in the third quarter, with annual shipments of CPO switches potentially reaching ten thousand units.
During an online investor conference this afternoon, Hon Hai's rotating CEO, Chiang Chi-heng, responded to institutional investors' questions about AI and general server operations. He stated that Hon Hai's AI rack shipments will continue to increase quarterly this year, with the total volume expected to double. In the first quarter, AI servers accounted for over 50% of the total server revenue. He anticipates that Hon Hai's general-purpose server business will maintain steady, double-digit percentage growth this year, outperforming the industry average.
Hon Hai spokesperson Wu Chun-yi explained that the group's shipments of various AI solutions are expected to increase quarterly this year, with shipments for Application-Specific Integrated Circuit (ASIC) server projects set to double.
Regarding sovereign AI project deployments, Wu mentioned that Hon Hai has increased its investment in the Kaohsiung Asia New Bay Area's supercomputing center, Visionbay.ai. The company has also entered into strategic collaborations with Amini, an African sovereign AI infrastructure company, and Bull, a French artificial intelligence and quantum computing firm, to develop infrastructure projects for the African sovereign AI market.
Looking ahead at the layout of complete AI servers and key components, Chiang Chi-heng told institutional investors that Hon Hai has long-term, stable cooperation with North American Cloud Service Provider (CSP) clients and can supply various AI server rack combinations. New complete machine products are expected to begin shipping in the third quarter, and iterative updates will bring more business opportunities, including strong growth momentum for Graphics Processing Unit (GPU) and ASIC artificial intelligence server racks. Hon Hai's growth in next-generation AI racks will increase, and its market share will continue to rise.
For ASIC-based AI server racks, Chiang stated that the Hon Hai group is a key development partner for several major CSPs. Hon Hai's experience in system and rack development is highly valued by clients. In addition to complete machines, Hon Hai continues to invest in high-value-added items such as liquid cooling, mechanical parts, high-speed transmission, power modules, and system verification to increase the self-sufficiency rate of key components.
Regarding progress in the semiconductor business, Wu Chun-yi stated that the development of new products for the 8-inch wafer fab has passed client verification and entered mass production at the end of April. In its global packaging and testing layout, Hon Hai's joint venture in India for an Outsourced Semiconductor Assembly and Test (OSAT) facility has completed its first capital injection and started factory construction.
In the deployment of physical AI applications, Wu pointed out that the Hon Hai group will begin deploying humanoid and collaborative robots in its US factories starting in the second quarter. (Editor: Yang Lan-hsuan) 1150514
During an online investor conference this afternoon, Hon Hai's rotating CEO, Chiang Chi-heng, responded to institutional investors' questions about AI and general server operations. He stated that Hon Hai's AI rack shipments will continue to increase quarterly this year, with the total volume expected to double. In the first quarter, AI servers accounted for over 50% of the total server revenue. He anticipates that Hon Hai's general-purpose server business will maintain steady, double-digit percentage growth this year, outperforming the industry average.
Hon Hai spokesperson Wu Chun-yi explained that the group's shipments of various AI solutions are expected to increase quarterly this year, with shipments for Application-Specific Integrated Circuit (ASIC) server projects set to double.
Regarding sovereign AI project deployments, Wu mentioned that Hon Hai has increased its investment in the Kaohsiung Asia New Bay Area's supercomputing center, Visionbay.ai. The company has also entered into strategic collaborations with Amini, an African sovereign AI infrastructure company, and Bull, a French artificial intelligence and quantum computing firm, to develop infrastructure projects for the African sovereign AI market.
Looking ahead at the layout of complete AI servers and key components, Chiang Chi-heng told institutional investors that Hon Hai has long-term, stable cooperation with North American Cloud Service Provider (CSP) clients and can supply various AI server rack combinations. New complete machine products are expected to begin shipping in the third quarter, and iterative updates will bring more business opportunities, including strong growth momentum for Graphics Processing Unit (GPU) and ASIC artificial intelligence server racks. Hon Hai's growth in next-generation AI racks will increase, and its market share will continue to rise.
For ASIC-based AI server racks, Chiang stated that the Hon Hai group is a key development partner for several major CSPs. Hon Hai's experience in system and rack development is highly valued by clients. In addition to complete machines, Hon Hai continues to invest in high-value-added items such as liquid cooling, mechanical parts, high-speed transmission, power modules, and system verification to increase the self-sufficiency rate of key components.
Regarding progress in the semiconductor business, Wu Chun-yi stated that the development of new products for the 8-inch wafer fab has passed client verification and entered mass production at the end of April. In its global packaging and testing layout, Hon Hai's joint venture in India for an Outsourced Semiconductor Assembly and Test (OSAT) facility has completed its first capital injection and started factory construction.
In the deployment of physical AI applications, Wu pointed out that the Hon Hai group will begin deploying humanoid and collaborative robots in its US factories starting in the second quarter. (Editor: Yang Lan-hsuan) 1150514