TAIPEI (Taiwan News) — Foxconn Chair Young Liu (劉揚偉) said Tuesday the company expects AI server revenue to grow by more than 50% this year, potentially surpassing NT$1 trillion (US$33.05 billion).

Speaking at an online investor briefing, Liu noted that cabinet production for AI servers will continue to improve, driven by robust orders from major clients, per CNA. Shipments have ramped up in the second quarter, following the Q1 mass production of GB-series AI chips by key customers.

Foxconn is co-developing application-specific integrated circuit, ASIC, servers with cloud service providers, and shipments have already begun, per Business Next. North American clients are expanding AI server deployments and increasing server purchases, supporting overall growth.

Capital expenditure is set to rise over 20% this year, with 60–70% earmarked for capacity expansion in India, Vietnam, the US, and Mexico. Foxconn CFO Huang Te-tsai (黃德才) confirmed no Middle East spending is planned this year, though EV and ICT projects continue in Saudi Arabia.

Liu said Foxconn has a long-standing presence in Saudi Arabia, citing joint ventures in electric vehicles and infrastructure with local partners. He explained the group remains closely tied to the AI server supply chain, from chipmakers to end users.

In India, Foxconn has expanded steadily since 2006 and continues to align closely with customer needs. Liu said he expects the country’s manufacturing competitiveness to strengthen as more suppliers invest locally.

Liu added that the group is also advancing talks with other carmakers beyond Mitsubishi Motors, hinting at future updates. He will deliver a keynote speech at Computex in Taipei next week covering smart manufacturing, EVs, and robotics.