At a glance. A record quarter in which cloud and networking reached 34% of sales and began closing on consumer electronics. For the 800V question the number that matters is not revenue but the 50–60% component self-sufficiency target — it decides how much of the new power content Foxconn keeps versus buys from Delta, Lite-On, and BizLink.
What changed this quarter
AI servers crossed half of all server revenue, growing more than 50% year on year, with Q2 guided to multiply both sequentially and annually.
The margin structure inverted. Gross margin fell 20 basis points as rack-level AI mix diluted it, but operating and net margins both rose — scale absorbed the dilution and the prior year carried heavier non-operating costs.
Currency became material. Management noted that each NT$1 of appreciation costs roughly 3% of NT-reported revenue, and the TWD had moved 8–9%. Full-year revenue guidance was raised to significant growth partly on that basis.
The numbers
| Q1 2025 | Value | Change |
|---|---|---|
| Revenue | NT$1.6443tn (~US$52bn) | +24% YoY, −23% QoQ |
| Gross profit | NT$100.5bn | +20% YoY |
| Operating profit | NT$46.5bn | +27% YoY |
| Net income to parent | NT$42.1bn (~US$1.34bn) | +91% YoY |
| EPS | NT$3.03 (~US$0.10) | — |
Margins: gross 6.11% (−20bps), operating 2.83% (+5bps), net 2.56% (+90bps).
Segment mix: consumer electronics 40%, cloud and networking 34%, computing 19%, components 7%.
On shareholder returns, management pointed to 2024 net income of NT$152bn, up 32% from 2019, a 2024 dividend of NT$5.8 — the highest since listing in 1991 — and six consecutive years of payout above 50%.
NVIDIA 800V read-through
No 800 V discussion. The relevant disclosure is structural.
Foxconn operates 233 sites in 24 countries and buys more than US$170bn a year — larger, management noted, than the roughly US$60bn of the world's biggest EV brand. Against that, it targets 50–60% component self-sufficiency on the products it builds, chips excepted.
That ratio is the 800V-relevant number. In a Kyber-class rack the non-GPU bill of materials is busbars, power distribution, cooling, and interconnect — precisely what 800 VDC changes. Foxconn's stated strategy is to make those rather than buy them, which is how it defends margin against rack-level revenue dilution, and which makes it both customer and competitor to the Taiwan component names in this collection.
Foxconn also said it would build an advanced compute centre in Kaohsiung with NVIDIA around Blackwell GPUs, and sized the AI market at US$1.3tn by 2032, with roughly US$600bn in hardware.
Segments that moved
Cloud and networking at 34% was the quarter's engine, with AI servers over half of server revenue and Q2 guided to multiply.
Consumer electronics at 40% grew year on year, with Q2 growth expected but the full year flat.
Computing at 19% grew, though the full year was guided down.
Components and others at 7% is the high-margin priority, guided flat for Q2 and growing for the year.
Guidance
- Q2 2025: significant sequential and annual growth overall, led by cloud and networking.
- Full year 2025: raised to significant growth, driven by cloud and networking plus components.
- Risks: geopolitics and tariffs, managed through the global footprint.
- Opportunity: management argued available compute is far short of potential AI demand, so smoother supply-chain output would release more growth.
Management Q&A
Q: Can you preview Hon Hai's Computex exhibit?
A: The two themes are AI servers and robotics, with about 80% of the booth on server systems and components. The exhibit is meant to show both breadth — products designed and built for three different customers — and depth, meaning vertical integration toward 50–60% self-made content (chips aside) in what Foxconn builds, including AI servers and eventually EVs. The cost edge cited is annual procurement of more than US$170bn, versus about US$60bn at the largest EV brand, which management said transfers from ICT into EVs once electronics are about 50% of a vehicle's cost versus about 10% in a combustion car.
Disclaimer
English notes on Hon Hai Precision Industry's investor conference of 21 May 2025, covering Q1 2025. Later notes on this page cover FY 2025 and the first half of 2026. Figures are as presented by management and have not been independently verified. USD equivalents are approximate at about NT$31.5 to the dollar. For reference only; not investment advice.