TAIPEI (Taiwan News) — Foxconn Chair and CEO Young Liu (劉揚偉) said he is “very optimistic” about next year, forecasting booming AI demand will power the company’s next wave of growth, Nikkei Asia reported Wednesday.

“For 2026, we see the development of the AI industry as the most important growth driver,” Liu said at an investor’s meeting. “But we will also closely monitor geopolitical uncertainties and foreign exchange fluctuations.”

Foxconn, also a major Apple supplier, reported NT$57.67 billion (US$1.86 billion) in net profit for the July–September period, up 17% from a year earlier and marking its strongest Q3 performance on record. Gross margin improved to 6.35% from 6.19% last year, driven by strong demand for AI and data center products.

Liu said Foxconn expects global AI server shipments to rise sharply, from 30,000 to 50,000 racks this year to as many as 100,000 racks by next year. “Speaking conservatively, next year’s figure will be at least double that of this year,” he said.

Foxconn CFO Huang Te-tsai (黃德才) said the company’s capital spending will increase about 20% this year to over NT$160 billion, with further growth next year. The investment will focus on expanding AI-related production capacity and developing components for high-performance computing.

Liu said Foxconn aims to become a one-stop service provider for clients building AI data centers. “Let Foxconn handle it. We can provide you with an entire AI data center,” he said, adding that the company will deepen partnerships across the supply chain to strengthen its ecosystem.

In addition to AI servers, Foxconn is seeing stronger-than-expected demand for consumer electronics. Liu said the company’s revenue forecast for this year has been raised, supported by robust sales of the iPhone 17 lineup and expectations for Apple’s rumored foldable phone launch next year.

Foxconn’s automotive ambitions are also advancing. Liu confirmed that the company’s Model E electric vehicle will enter production next year for domestic and international markets.

Revenue from AI data center servers is expected to reach NT$1 trillion this year, with Foxconn’s global market share already exceeding 40%. Liu said the company will expand AI server capacity in North America, Japan, and Taiwan next year, with Nvidia-powered humanoid robots set to join the production line at its Houston plant in the coming months.

Foxconn’s AI hardware peers, including Wistron, Quanta Computer, Pegatron, Inventec, and Compal Electronics, are also ramping up US capacity, particularly in Texas, to meet demand for US-made servers.

For Q4, Foxconn forecast overall revenue growth of 3% to 15% year over year. It expects cloud and networking products to rise more than 15%, while computing and smart device sales may decline due to foreign exchange volatility.

Cloud computing now accounts for 42% of Foxconn’s total revenue, making it its largest business segment, followed by consumer electronics at 37%. Liu said Foxconn’s diversification strategy positions the company well for the next wave of AI-driven global expansion.