Foxconn Industrial Internet (工业富联) on Wednesday warned that its fourth‑quarter 2025 net profit attributable to the parent will hit between RMB 12.6 billion and RMB 13.2 billion, a year‑on‑year rise of roughly 56–63%. For the full year it expects RMB 35.1–35.7 billion, up about 51–54% versus 2024, with incremental profit running near RMB 11.9–12.5 billion. The company attributed the jump to sharply higher sales of high‑speed switching equipment and AI servers sold into cloud providers.
The most eye‑catching detail is the scale of that growth: revenue from 800G‑and‑above high‑speed switches expanded more than tenfold in 2025 overall and rose by more than 4.5x in the fourth quarter alone. Sales of AI servers to cloud service providers climbed more than threefold for the year, while quarter‑on‑quarter server revenue in Q4 increased by over 50% and year‑on‑year by more than 5.5x. Those are the hardware footprints of the AI spending wave — hyperscalers upgrading fabrics and buying GPU‑heavy systems to train advanced models and run inference at scale.
The results underscore two broader trends in China’s tech landscape. First, a rapid upgrade cycle in data‑centre networking as operators move from 100G/400G to 800G architectures to keep up with internal bandwidth demands created by large models; and second, the outsized role of a few cloud customers in driving vendors’ fortunes. Foxconn Industrial Internet, a Foxconn group arm that has shifted away from low‑margin consumer assembly into server and networking products, appears to be capitalizing on that twin demand surge by supplying both systems and the box‑level networking required by AI workloads.
The upside is clear for investors and suppliers: stronger revenue, fatter product mix and a clearer path up the value chain for a firm that long lived on contract manufacturing margins. But there are cautionary notes: the business is closely tied to capex cycles at a handful of hyperscalers, component supply (notably high‑end chips and optical parts) remains volatile, and geopolitical restrictions on advanced semiconductors could constrain longer‑term growth. For now, FII’s guidance is a bellwether that China’s AI hardware investment is real and sizable, with knock‑on effects for the broader industrial supply chain.