Foxconn shareholders give nod to record cash dividend payout: Report
Taipei, May 29
,: Foxconn's shareholders approved a record cash dividend payout of $0.22 per share, its highest since the electronics giant listed on the Taiwan Stock Exchange in 1991, Focus Taiwan reported.
The company is expected to issue a total of $3.2 billion in cash dividends. The record dividends come on the back of a blockbuster profit of nearly $6 billion for 2025.
The Apple-supplier is relying on the booming AI demand to drive up the company's sales. Hon Hai's global share of the server market stands at 40 per cent.
Hon Hai's shipments of AI server racks are expected to double in 2026 from a year earlier, the news report quoted Hon Hai Chairman Young Liu as saying. The growth comes on the back of more than $700 billion in capital expenditure by Amazon, Microsoft, Google and Meta this year.
"Their capital expenditure is our market. It has already reached $700 billion, and their capital expenditure next year is expected to potentially reach $1 trillion. This gives us immense confidence in our future growth momentum," a Reuters report quoted Liu as saying at the shareholder conference.
Liu's optimism is driven by exploding global demand for artificial intelligence tools. Foxconn's first quarter profit zoomed 19 per cent as it becomes the top supplier of AI servers. The manufacturing powerhouse will expand its capital expenditure by 30 per cent this year primarily on expanding the server capacity.
The company's shares have risen 25 per cent this year as investors turn bullish on the company's immense potential as Nvidia's top server supplier and Apple's top iPhone assembler.
— ANI
Reader Comments
$700 billion in CAPEX from the big tech players — and Foxconn is positioned right in the middle of it. It's fascinating to see a company that started as a small connector manufacturer in Taiwan now being the backbone of the AI boom. But I wonder how sustainable this demand is once the initial AI infrastructure rush stabilizes.
Impressive numbers from Foxconn, but the real test for India is whether we can capture a larger share of this server manufacturing pie. 🏭 While China and Taiwan dominate, our new policies like the semiconductor mission need to accelerate. Also, reliance on Nvidia and Apple is a double-edged sword — if AI hype fades, so does Foxconn's premium.
$3.2 billion in dividends — that's *sunn* return for shareholders! 😄 But I hope Foxconn also remembers its workers in places like Chennai and Sriperumbudur. With AI demand driving profits, they should invest more in worker safety and fair wages, not just pass it on to investors. That would be truly impressive.
The comment about 'their CAPEX is our market' is brilliant — shows how deeply integrated Foxconn is in the global tech ecosystem. As an Indian, I'm watching to see if Apple's 'Make in India' iPhones will also include more AI server components in the future. That would be a real game-changer for our local supply chains.
Honestly, I'm a bit skeptical. Foxconn is heavily dependent on Apple and Nvidia — both US firms. What if geopolitical tensions or tariffs disrupt this? 🤔 India should focus on creating
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