Liu Yangwei accepted an interview with foreign media and made a bold statement: Hon Hai will seize 50% of the AI server market in a few years

CNBC reported on the 30th that Liu Yangwei, chairman of Taiwan’s Hon Hai Technology Group, pointed out that since the demand for artificial intelligence (AI) infrastructure shows no signs of slowing down, the company is seeking to expand its AI server market share and increase its production capacity in the United States. He said that Hon Hai’s global AI server market share may reach 50% within a few years, and may rise to 45% next year.

"I think we can grow to 50%," he said in an interview, referring to Hon Hai's share of the global AI server market, which currently accounts for about 40%.

Hon Hai Precision Industry, the core company of the group, is famous as a major Apple iPhone assembly plant, but in recent years it has gradually turned to AI infrastructure as its key growth driver.

Liu Yangwei expects that AI infrastructure will account for 60% to 65% of the group's revenue in the next three to five years, and this does not include edge AI devices (edge ​​AI), which can run AI and machine learning operations directly on local hardware.

He said that Hon Hai's production capacity has been completely booked for at least the next year and a half, indicating continued demand for AI infrastructure.

He said that current demand mainly comes from AI model developers and cloud service providers, while governments and enterprises have not yet fully embraced AI technology. He added that AI demand is still "quite strong."

Liu Yangwei pointed out that Hon Hai is seeking to expand its production scale in the United States, and the company plans to further expand its upstream supply chain to better serve the U.S. market. He said, "What we have to do is develop into the upstream supply chain." He explained that expanding the manufacturing layout will allow Hon Hai to respond to growing demand more quickly.

However, higher manufacturing costs in the United States mean that the company will initially focus on higher-profit products, including AI server racks and data center equipment. Expanding U.S. production will ultimately help lower manufacturing costs, he said.

He added that Hon Hai’s annual expenditure in the field of AI may exceed the original plan of US$3 billion to US$5 billion, depending on the extent of vertical integration expansion.