Hon Hai says AI server capacity for the next 18 months is fully booked, targets about 45% market share next year
Hon Hai Chairman Young Liu said demand for AI infrastructure has shown no clear slowdown, AI server capacity for the next 18 months is fully booked, and the company plans to raise its global AI server market share from about 40% currently to about 45% next year and to 50% in the coming years. Second-quarter data disclosed by Hon Hai in August this year showed that the cloud and networking products division, which includes AI servers, already accounted for 51% of revenue, surpassing 50% for the first time. Young Liu also stressed prudent investment management, saying that overinvesting would kill the company, and that depending on the degree of vertical integration, annual AI investment could exceed the originally planned US$3 billion to US$5 billion.
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Hon Hai disclosed that AI server capacity has been fully booked for 18 months and gave a market share target and investment guidance, offering a window into AI hardware supply and demand and the pace of capacity expansion.
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Hon Hai: AI server capacity for the next 18 months is fully booked. Kuai Technology Download the app for exclusive early access. November 1, 2026, 17:33:16 From Henan
Kuai Technology, November 1 — Hon Hai Chairman Liu Young-way said in an interview that demand for AI infrastructure has shown no clear signs of slowing, and Hon Hai plans to raise its global AI server market share from about 40% currently to around 45% next year, and to 50% within the next few years.
Hon Hai's official name is Hon Hai Precision Industry. It has long been known for assembling Apple's iPhone, but AI infrastructure is rapidly becoming its core growth engine.
Data disclosed by Hon Hai in August this year showed that in the second quarter, the cloud and networking products division, which includes AI servers, already accounted for 51% of the company's revenue, breaking above 50% for the first time. This means that although iPhone assembly remains an important business for Hon Hai, AI hardware has already matched or even surpassed it in financial contribution.
At present, demand mainly comes from AI model developers and cloud service providers, while government and enterprise customers have not yet fully adopted the technology. Liu Young-way stressed that AI demand remains "quite strong," and that government and enterprise customers are still in an early exploratory stage, suggesting there is still considerable room for demand to be unleashed.
However, even with strong demand, Liu Young-way still emphasized prudent investment management. He said bluntly: "Overinvesting will kill the company." Hon Hai will strictly control spending as it expands its AI business. Depending on the degree of vertical integration, Hon Hai's annual AI investment may exceed the originally planned US$3 billion to US$5 billion.
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