Hon Hai sets NT$11tn target in annual revenue - Taipei Times

AI DRIVE:

Cloud and networking products have replaced smartphones as Hon Hai’s largest business segment at about 40 percent of total revenue

By Meryl Kao

/ Staff Reporter

Hon Hai Precision Industry Co (鴻海精密), the world’s largest contract server maker, yesterday said it is targeting to grow its annual revenue by 36 percent to NT$11 trillion (US$350.5 billion) this year, driven by robust demand for artificial intelligence (AI) server racks given heavy expenditures from global cloud service providers.Last year, demand for AI servers grew significantly, driving a major shift in Hon Hai’s revenue structure, chairman Young Liu (劉揚偉) told the company’s annual general meeting in New Taipei City’s Tucheng District (土城).Cloud and networking products accounted for about 40 percent of the company’s total revenue of NT$8.1 trillion last year, replacing smartphones as Hon Hai’s largest business segment. The cloud and networking products are to contribute an even bigger share this year, Liu said.