Latest news with #techmanufacturing
Khaleej Times
12 hours ago
- Business
- Khaleej Times
Foxconn's Apple era fades as AI servers drive growth in Taiwan tech sector
Taiwan's Foxconn, which rose to become a global tech manufacturing juggernaut by assembling millions of iPhones, can now say its main business is no longer Apple as it takes advantage of the AI-boom to diversify its income. Its revenue from making AI servers and other cloud and networking products, including for major customer Nvidia , surpassed smart consumer products such as iPhones for the first time in the second quarter, marking the culmination of a shift that began years ago and has swept through Taiwan's tech industry. Foxconn's heavy reliance on the smartphone business has long been viewed by investors as a significant risk, as demand growth for new iPhones has gradually weakened since they were first introduced nearly two decades ago, leaving the top iPhone assembler grappling with slowing sales momentum, analysts said. Wary of the risk, Foxconn Chairman Young Liu has been championing new businesses such as AI servers, electric vehicles and semiconductors since taking the top job in 2019. While its expansion into EVs and chips has yet to show a meaningful contribution to its topline, Foxconn's success in AI server manufacturing - the company is Nvidia's biggest server maker - is the result of its early bets before the technology was thrust into the limelight with the advent of ChatGPT in late 2022. Consumer electronics accounted for 35% of Foxconn's total revenue in the second quarter, while cloud and networking business represented 41%. In 2021, consumer electronics represented 54% of its revenue. The firm's prudent wagers years back helped it cultivate a now-prized relationship with the U.S. AI chip firm and other major AI players, analysts said. "The company has been in the business for years, meeting higher quality requirements, diversifying assembly and operations across sites, and pursuing vertical integration,' said Ming-Chi Kuo, an analyst at TF International Securities. Foxconn began producing reference designs for Nvidia's graphics cards around 2002 and started making general-purpose servers for cloud service providers' data centres as early as around 2009. Its AI server business with Nvidia is in many ways the culmination of that history, analysts said. Foxconn says it is now one of the world's largest suppliers of both general-purpose and AI servers, with a market share of nearly 40% in each. The company has also shown a willingness to commit investment to a project at an earlier stage than other companies, Kuo said, citing its past investments for Apple and similar moves for Nvidia. 'In long-term partnerships, Foxconn is more willing to take the initiative,' he said. Foxconn's plan to build factories in Houston, Texas — part of Nvidia's $500 billion U.S. investment plan — and in Mexico to produce AI servers for the U.S. client underscores this strategy, analysts said. Foxconn now expects its AI server revenue would grow more than 170% in the third quarter year-on-year. Foxconn and Nvidia declined to comment. Apple did not respond to request for comment. BROADER SHIFT The shift at Foxconn mirrors a broader trend in Taiwan's technology sector, where companies once centred on consumer electronics — such as Foxconn with iPhones, and Quanta Computer and Wistron Corp with notebooks — are now investing heavily in AI servers. Nvidia partner Wistron's revenue for January to July rose 92.7%, while Quanta's grew 65.6% in the same period. "The monthly sales jump for Taiwan ODMs in the first half of 2025 is evidence of this trend,' said Robert Cheng, head of Asia technology hardware research at BofA Global Research, referring to original design manufacturers like Foxconn that contract manufacture products for their clients. Their fast transition into AI servers is also the result of Taiwanese tech supply chain working closely with U.S. tech giants on data centre infrastructure work for a decade now, according to Chris Wei, industry consultant at Taiwan's Market Intelligence Consulting Institute. He estimates Taiwan accounts for about 80% of global server shipments and more than 90% of AI servers. Cheng agrees. "We think this shift toward AI servers, whatever form it takes, is good for Taiwan's tech industry," he said, noting Taiwanese firms' ability to rapidly shift to cater to changing needs from their customers.
Yahoo
16 hours ago
- Business
- Yahoo
Foxconn's Apple era fades as AI servers drive growth in Taiwan tech sector
By Wen-Yee Lee TAIPEI (Reuters) -Taiwan's Foxconn, which rose to become a global tech manufacturing juggernaut by assembling millions of iPhones, can now say its main business is no longer Apple as it takes advantage of the AI-boom to diversify its income. Its revenue from making AI servers and other cloud and networking products, including for major customer Nvidia, surpassed smart consumer products such as iPhones for the first time in the second quarter, marking the culmination of a shift that began years ago and has swept through Taiwan's tech industry. Foxconn's heavy reliance on the smartphone business has long been viewed by investors as a significant risk, as demand growth for new iPhones has gradually weakened since they were first introduced nearly two decades ago, leaving the top iPhone assembler grappling with slowing sales momentum, analysts said. Wary of the risk, Foxconn Chairman Young Liu has been championing new businesses such as AI servers, electric vehicles and semiconductors since taking the top job in 2019. While its expansion into EVs and chips has yet to show a meaningful contribution to its topline, Foxconn's success in AI server manufacturing - the company is Nvidia's biggest server maker - is the result of its early bets before the technology was thrust into the limelight with the advent of ChatGPT in late 2022. Consumer electronics accounted for 35% of Foxconn's total revenue in the second quarter, while cloud and networking business represented 41%. In 2021, consumer electronics represented 54% of its revenue. The firm's prudent wagers years back helped it cultivate a now-prized relationship with the U.S. AI chip firm and other major AI players, analysts said. "The company has been in the business for years, meeting higher quality requirements, diversifying assembly and operations across sites, and pursuing vertical integration,' said Ming-Chi Kuo, an analyst at TF International Securities. Foxconn began producing reference designs for Nvidia's graphics cards around 2002 and started making general-purpose servers for cloud service providers' data centres as early as around 2009. Its AI server business with Nvidia is in many ways the culmination of that history, analysts said. Foxconn says it is now one of the world's largest suppliers of both general-purpose and AI servers, with a market share of nearly 40% in each. The company has also shown a willingness to commit investment to a project at an earlier stage than other companies, Kuo said, citing its past investments for Apple and similar moves for Nvidia. 'In long-term partnerships, Foxconn is more willing to take the initiative,' he said. Foxconn's plan to build factories in Houston, Texas — part of Nvidia's $500 billion U.S. investment plan — and in Mexico to produce AI servers for the U.S. client underscores this strategy, analysts said. Foxconn now expects its AI server revenue would grow more than 170% in the third quarter year-on-year. Foxconn and Nvidia declined to comment. Apple did not respond to request for comment. BROADER SHIFT The shift at Foxconn mirrors a broader trend in Taiwan's technology sector, where companies once centred on consumer electronics — such as Foxconn with iPhones, and Quanta Computer and Wistron Corp with notebooks — are now investing heavily in AI servers. Nvidia partner Wistron's revenue for January to July rose 92.7%, while Quanta's grew 65.6% in the same period. "The monthly sales jump for Taiwan ODMs in the first half of 2025 is evidence of this trend,' said Robert Cheng, head of Asia technology hardware research at BofA Global Research, referring to original design manufacturers like Foxconn that contract manufacture products for their clients. Their fast transition into AI servers is also the result of Taiwanese tech supply chain working closely with U.S. tech giants on data centre infrastructure work for a decade now, according to Chris Wei, industry consultant at Taiwan's Market Intelligence & Consulting Institute. He estimates Taiwan accounts for about 80% of global server shipments and more than 90% of AI servers. Cheng agrees. "We think this shift toward AI servers, whatever form it takes, is good for Taiwan's tech industry," he said, noting Taiwanese firms' ability to rapidly shift to cater to changing needs from their customers. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16 hours ago
- Business
- Yahoo
Foxconn's Apple era fades as AI servers drive growth in Taiwan tech sector
By Wen-Yee Lee TAIPEI (Reuters) -Taiwan's Foxconn, which rose to become a global tech manufacturing juggernaut by assembling millions of iPhones, can now say its main business is no longer Apple as it takes advantage of the AI-boom to diversify its income. Its revenue from making AI servers and other cloud and networking products, including for major customer Nvidia, surpassed smart consumer products such as iPhones for the first time in the second quarter, marking the culmination of a shift that began years ago and has swept through Taiwan's tech industry. Foxconn's heavy reliance on the smartphone business has long been viewed by investors as a significant risk, as demand growth for new iPhones has gradually weakened since they were first introduced nearly two decades ago, leaving the top iPhone assembler grappling with slowing sales momentum, analysts said. Wary of the risk, Foxconn Chairman Young Liu has been championing new businesses such as AI servers, electric vehicles and semiconductors since taking the top job in 2019. While its expansion into EVs and chips has yet to show a meaningful contribution to its topline, Foxconn's success in AI server manufacturing - the company is Nvidia's biggest server maker - is the result of its early bets before the technology was thrust into the limelight with the advent of ChatGPT in late 2022. Consumer electronics accounted for 35% of Foxconn's total revenue in the second quarter, while cloud and networking business represented 41%. In 2021, consumer electronics represented 54% of its revenue. The firm's prudent wagers years back helped it cultivate a now-prized relationship with the U.S. AI chip firm and other major AI players, analysts said. "The company has been in the business for years, meeting higher quality requirements, diversifying assembly and operations across sites, and pursuing vertical integration,' said Ming-Chi Kuo, an analyst at TF International Securities. Foxconn began producing reference designs for Nvidia's graphics cards around 2002 and started making general-purpose servers for cloud service providers' data centres as early as around 2009. Its AI server business with Nvidia is in many ways the culmination of that history, analysts said. Foxconn says it is now one of the world's largest suppliers of both general-purpose and AI servers, with a market share of nearly 40% in each. The company has also shown a willingness to commit investment to a project at an earlier stage than other companies, Kuo said, citing its past investments for Apple and similar moves for Nvidia. 'In long-term partnerships, Foxconn is more willing to take the initiative,' he said. Foxconn's plan to build factories in Houston, Texas — part of Nvidia's $500 billion U.S. investment plan — and in Mexico to produce AI servers for the U.S. client underscores this strategy, analysts said. Foxconn now expects its AI server revenue would grow more than 170% in the third quarter year-on-year. Foxconn and Nvidia declined to comment. Apple did not respond to request for comment. BROADER SHIFT The shift at Foxconn mirrors a broader trend in Taiwan's technology sector, where companies once centred on consumer electronics — such as Foxconn with iPhones, and Quanta Computer and Wistron Corp with notebooks — are now investing heavily in AI servers. Nvidia partner Wistron's revenue for January to July rose 92.7%, while Quanta's grew 65.6% in the same period. "The monthly sales jump for Taiwan ODMs in the first half of 2025 is evidence of this trend,' said Robert Cheng, head of Asia technology hardware research at BofA Global Research, referring to original design manufacturers like Foxconn that contract manufacture products for their clients. Their fast transition into AI servers is also the result of Taiwanese tech supply chain working closely with U.S. tech giants on data centre infrastructure work for a decade now, according to Chris Wei, industry consultant at Taiwan's Market Intelligence & Consulting Institute. He estimates Taiwan accounts for about 80% of global server shipments and more than 90% of AI servers. Cheng agrees. "We think this shift toward AI servers, whatever form it takes, is good for Taiwan's tech industry," he said, noting Taiwanese firms' ability to rapidly shift to cater to changing needs from their customers. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
News24
05-06-2025
- Business
- News24
SA tech firm aims to create jobs for youth
The Johannesburg-based tech company's factory in the Free State is expected to create 5 000 jobs by 2027. It designs and produces smartphones such as the Orion Pro, using local skills and materials. Enexi is also launching youth training programmes to equip young people with tech skills. In a global tech economy dominated by imports and Silicon Valley brands, a proudly South African company is quietly reshaping the game and thousands of jobs along with it. Enexi Solutions, a smart technology manufacturer based in Bryanston in Johannesburg, is positioning itself as a trailblazer in Africa's tech manufacturing sector. Led by founder Richard Shokane and managing director Lebohang Mopeli, Enexi designs and produces smartphones and digital devices with one clear goal, to shift Africa from being just a tech consumer to becoming a tech producer. Supplied Now, the company is taking a major leap, it is building a state-of-the-art laptop bag manufacturing plant in Mangaung in the Free State, with a long-term vision to expand into full device assembly and production. And with it, they plan to create more than 5 000 new jobs by 2027. Shokane said at least 1 000 people would be employed in the first phase of construction. You can't sell a laptop without a bag. So, why import it when we can make it here, create jobs and build our ecosystem? Richard Shokane Born in Bushbuckridge, built for the continent Mahlatsi Moleya Richard Shokane (44), was born in Bushbuckridge, Mpumalanga. His journey to building a tech company spanned both academic and corporate milestones across the globe. After earning a Bachelor of Science degree and later a Master's in Mathematics from Wits University, he taught maths in Saudi Arabia and at New York University in Dubai, where he inspired a generation of students to pursue careers in science, technology, engineering and mathematics. In 2019, he joined Foxconn in Guangzhou, one of China's largest electronics manufacturers in the world, which works in hardware quality control. There, he gained a specific understanding of global supply chains, manufacturing efficiency and how to scale production with precision. Rather than stay abroad, he returned to SA with a bigger purpose – to build something rooted in African soil, which could rival the world's best. 'I've seen how the world builds tech,' says Shokane. 'Now we're doing it our way from the ground up.' Today, Enexi has operational branches in SA, Botswana, Zambia and Eswatini, with regional teams proud to be part of a homegrown African tech brand. We're not just making devices. We're building a movement. Lebogang Mopeli, Enexi managing director Africa has all the minerals it needs to make world-class tech. But we've never used them to their full potential. We want to change that – by turning our resources into real products, built by our people. Richard Shokane Shokane's vision is in motion. Enexi has established active branches in four countries, with each market embracing the idea of a truly African-made tech brand. 'We've seen the excitement,' says Mopeli. 'People want to own something that reflects their identity. Enexi isn't just about devices, it's about dignity.' Real devices, real specs Supplied Take the Orion Pro, Enexi's latest smartphone. It runs on Android 15, with 8GB of RAM, a 50MP rear camera, a 16MP front camera and a powerful 6000mAh battery. Unlike many global brands, the Orion Pro is built with African users in mind – it is tough, reliable and backed by a three-year warranty. Most people chase specs that sound good on paper; we build phones that work for real people and last. Richard Shokane But, for Enexi, the hardware is only one piece of the puzzle. The deeper aim is to develop skills, empower the youth and create long-term employment in SA and across the continent. Lerato Mazibuko's story | Why it matters For 21-year-old Lerato Mazibuko, who recently learnt about Enexi through a local community programme in the Free State, the announcement couldn't have come at a better time. 'I've always been curious about tech,' Mazibuko says. 'But I never thought I could be part of it. Now it feels possible and close to home.' Enexi is planning training and skills development programmes that will teach young people such as Mazibuko to build, repair and maintain tech devices, preparing them for the global digital economy without needing to leave their communities. Business that builds Mahlatsi Moleya In a category where global brands such as Tecno, Xiaomi and Samsung dominate, the Orion Pro holds its own: Compared with the Tecno Spark 10, which has similar RAM and camera specs, the Orion Pro is cheaper and comes with a longer warranty. While the Samsung Galaxy A04S sells for about R2 999 and offers a similar battery size, it lacks some of the local repair and support options that Enexi provides. Unlike other entry-level phones, the Orion Pro is backed by local manufacturing and jobs, meaning each purchase contributes to SA's economy. As construction plans kick off in Mangaung, Enexi is not waiting for Silicon Valley to open doors. It's building its own gadgets and it's doing it right here, on African soil. The Orion Pro is priced at R1 500 and available at Shokane believes that private companies, not government alone, are the real engines of job creation. But for companies such as Enexi to succeed, they need policy support and access to funding. We don't need to wait for Silicon Valley to give us anything. We've got the people, the minerals and the idea; we just need to back ourselves. With the Free State facility breaking ground soon and an ambitious growth strategy under way, Enexi is proving that Africa's tech future doesn't have to be imported; it can be built from scratch, right here. And it's already happening.
