TAIPEI (Taiwan News) — Foxconn Chair Young Liu (劉揚偉) announced during an earnings call on Friday that demand for AI servers and cloud computing drove the company’s annual revenue to a record NT$6.85 trillion (US$216 billion) in 2024, reflecting an 11% year-on-year increase.

Liu said AI server shipments and revenue will continue to see strong quarter-by-quarter growth. AI server revenue—primarily from Nvidia systems—expected to surpass NT$1 trillion this year, per CNA.

According to Liu, AI server revenue grew more than 150% compared to 2023, while overall server revenue increased 78% year-on-year. He predicted that servers and cloud network products will soon match revenue from the consumer products segment, as computer terminals and iPhone contract manufacturing begin to flatten.

Meanwhile, components such as connectors, precision modules, lenses, and automotive parts declined in the first quarter compared to the fourth quarter, but still showed significant year-on-year growth. Liu said electronic components demand will be driven by electric vehicles (EVs), with Foxconn expected to announce a deal with a Japanese automaker in the coming months.

Foxconn’s expansion in servers and cloud services is expected to drive future profitability, allowing the company to diversify beyond contract manufacturing, such as iPhone assembly for Apple.

Liu added that the company’s smartphone segment is expected to remain flat, while computing products could decline between 3% and 15%.