Hon Hai: With 3 Major Growth Drivers, Entering a Phase of Significant Revenue and Profit Growth

(CNA, Reporter Chung Jung-feng, Taipei, 14th) Hon Hai's rotating CEO, Chiang Chi-heng, stated today that the group now has three major growth drivers and is entering another phase of significant revenue and profit growth. Regarding the production capacity layout for artificial intelligence (AI) servers, Chiang pointed out that the United States and Mexico remain Hon Hai Group's largest mass production bases for AI servers, catering to the strong demand from the U.S. market.

Hon Hai explained that it continues to maintain an operating profit margin of over 3% as a key business indicator and expects this year's operating margin to outperform the 3.2% level of 2025, expressing cautious optimism about profit improvement this year.

At an online investor conference this afternoon, Chiang Chi-heng responded to institutional investors' questions, stating that Hon Hai now possesses three major growth drivers: the ability to convert Hon Hai's forward-looking R&D into revenue, Hon Hai's establishment of a foundation in both AI infrastructure and consumer intelligence, and Hon Hai's entry into another phase of significant revenue and profit growth. He hopes this development trend will continue, allowing 'this elephant to keep dancing.'

Regarding the AI server production layout, Chiang pointed out that the U.S. and Mexico are still Hon Hai Group's largest AI server mass production bases, meeting the demands from the largest market, the United States, for projects including cloud service providers (CSP), sovereign AI, and large data centers. As for Taiwan's production capacity, it continues to expand. Taiwan is a crucial base for Hon Hai Group's AI server development, verification, and initial mass production, playing an important role in high-end AI servers and key component layouts.

Speaking about the plans for Computex 2026 in June, Hon Hai spokesperson Wu Chun-yi said that this year's focus is on 'AI Diversified Ecosystem Integration,' centering on AI infrastructure and vertically integrated solutions. The company will exhibit AI racks L1 to L12, NVIDIA's new generation Vera Rubin architecture, LPU (Language Processing Unit) architecture, and silicon photonics (CPO) solutions. It will collaborate with major manufacturers like NVIDIA, Intel, and AMD to present AI data center solutions. Hon Hai will also showcase advanced technologies like humanoid robots and space data centers. (Editor: Chang Chun-mao) 1150514