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Liu Yangwei said that Hon Hai’s AI server production capacity has been fully booked for at least one and a half years, and its market share is expected to grow to 45% next year and challenge 50% in the next few years. It will enhance its upstream layout of US manufacturing and supply chains.
is honorable Chairman Liu Yangwei said in an interview with CNBC that the demand for AI infrastructure has not declined significantly, and Hon Hai will expand its global AI server market share and increase its US manufacturing presence. The current market share of about 40% may increase to about 45% next year, and is expected to reach 50% in the next few years.
Liu Yangwei said in an interview with CNBC: “I think we can increase by 50%.”
Honorable High will assemble for AppleiPhone As is well known, AI infrastructure has gradually become a major development driver. Liu Yangwei predicts that in the next three to five years, AI infrastructure will account for 60% to 65% of Hon Hai’s revenue, excluding edge AI devices that directly execute AI and machine learning on local hardware.
He said Hon Hai’s production capacity is fully booked for at least a year and a half in the future, reflecting continued strong demand for AI infrastructure. Current demand mainly comes from AI model developers and cloud service providers, while governments and enterprises have not yet fully adopted this technology. He stressed that demand for AI remains “quite strong.”
Liu Yangwei said that Hon Hai plans to expand the upstream of the supply chain to better meet the needs of the US market. Expanding the manufacturing layout will help respond to increased demand more quickly.
“What we have to do next is move up the supply chain,” he said.
However, manufacturing costs in the United States are higher, so the company will initially prioritize the production of high-profitability products, including AI server cabinets and data center equipment. Liu Yangwei believes that as the scale of American production increases, this will eventually help reduce manufacturing costs.
Hon Hai is strengthening its layout in the supply chain of AI infrastructure, spanning from servers and cabinets to entire data centers and computing services.
Even though the demand for AI continues to grow, Liu Yangwei still stressed that the investment should be managed prudently. He said: “Excessive investment will destroy the company.” Hon Hai will strictly control expenditures when expanding its AI business.
Liu Yangwei said that depending on the degree of vertical integration, Hon Hai’s annual AI investment may exceed the original US$3 billion to US$5 billion.
As for how Hon Hai will respond if major customers cut AI spending, Liu Yangwei said that the decline in demand from one customer may be compensated by the growth of other customers. However, if the entire industry slows down, Hon Hai and the overall AI supply chain will face greater challenges.
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He said the current market share is around 40%, and it could increase to around 45% next year. In the next few years, it has the opportunity to challenge 50%, which shows that Hon Hai is actively expanding its AI server business scope.
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Liu Yangwei pointed out that Hon Hai’s production capacity is fully booked for at least one and a half years in the future, indicating that the demand for AI infrastructure is still strong, and its main customers are AI model developers and cloud service providers.
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Hon Hai will expand the upstream of the supply chain, expand its manufacturing footprint in the United States, prioritize the production of AI server cabinets and data center equipment in the early stage, and prudently control investment and expenditure.
