Foxconn Chairman Young Liu stood in front of shareholders in New Taipei on May 29 and delivered a message that was, by corporate standards, unusually blunt: AI demand is real, it’s enormous, and Foxconn plans to ride it as far as it goes.
The confidence isn’t unfounded. Major cloud service providers are collectively spending $700 billion on AI-related infrastructure in 2026, with projections suggesting that figure could climb to $1 trillion in 2027. For the world’s largest server manufacturer for Nvidia and top assembler for Apple, those numbers represent something close to a golden ticket.
The numbers behind the optimism
Foxconn’s Q1 2026 results gave Liu plenty of ammunition. The company posted a 19% year-over-year increase in profits, beating analyst expectations. AI server sales were a primary driver.
To capitalize on the momentum, Foxconn is bumping its capital expenditure by 30% this year. The previous year’s capex stood at T$174 billion, roughly $5.6 billion. The additional spending is earmarked for expanding AI server manufacturing capabilities.
