Foxconn Forecasts AI Server Business to Double in Second Half of 2023

Foxconn forecasts its AI server business will double in the second half of this year, driven by demand for AI servers.

The company, which is also a major supplier of Apple products, said that it expects to ship 1 million AI servers in the second half of 2023, up from 500,000 in the first half.

Foxconn said that the growth in its AI server business is being driven by a number of factors, including the increasing adoption of AI by businesses and governments, as well as the rising popularity of AI-powered applications such as ChatGPT.

However, Foxconn reiterated its full year 2023 outlook of flat sales, citing continued headwinds from the global chip shortage and supply chain disruptions.

Despite the challenges, Foxconn said that it remains committed to growing its AI server business and is investing heavily in research and development. The company said that it is also working to expand its customer base and develop new AI-powered applications.

Young Liu, the chairman of Foxconn, expressed confidence in the ongoing growth of their AI server business. He emphasized the company's dedication to becoming a leading player in the AI market and outlined their substantial investments in research and development aimed at creating innovative AI-powered products and services.

Foxconn's AI server business is a relatively new business for the company, but it has grown rapidly in recent years. The company's AI server business generated $1.1 billion in revenue in 2022, up from $500 million in 2021.

Foxconn is not the only company that is seeing strong growth in its AI server business. Other major players in the AI server market include Hewlett Packard Enterprise (HPE), Dell Technologies, and IBM.

The growth in the AI server market is being driven by a number of factors, including the increasing adoption of AI by businesses and governments, as well as the rising popularity of AI-powered applications such as ChatGPT.

ChatGPT is a large language model chatbot developed by OpenAI and backed by Microsoft. It is one of the most popular AI-powered applications and is used by businesses and governments around the world.

The growth in the AI server market is a major opportunity for Foxconn and other major players in the IT industry. The market is expected to grow significantly in the coming years, as businesses and governments continue to adopt AI.