(Yicai) Aug. 11 -- Thanks to rapid growth in its artificial intelligence-related business, Foxconn Industrial Internet achieved bumper results in the first half, according to the latest financial report from the mainland subsidiary of Hon Hai Precision Industry, the Taiwan-based Apple supplier.

In the first six months of this year, Foxconn Industrial achieved a net profit of CNY12.1 billion (USD1.7 billion), a 39 percent increase compared to the same period last year, while revenue rose 36 percent year-on-year to CNY360.8 billion (USD50.2 billion), the Shenzhen-based manufacturer of communication and network equipment disclosed yesterday.

In the second quarter alone, Foxconn Industrial's net profit and revenue grew by 51 percent and 36 percent, reaching CNY6.9 billion (USD960.7 million) and CNY200.3 billion (USD27.9 billion), respectively, both marking record highs for the period. This performance was also in line with the earnings forecast released by the company on July 7.

The market showed little reaction today, with Foxconn Industrial [SHA: 601138] closing down 0.66 percent at CNY36.35 (USD5.06). But the stock had previously surged 10.3 percent on July 8 following the earnings forecast, bringing its total gain this year to 74 percent.

There has been a surge in demand for high-end AI servers, Foxconn Industrial noted in its financial report, driven by breakthroughs in areas related to generative AI and consequent rapid development of the application ecosystem. The company said its server revenue in the second quarter grew by more than 50 percent, with AI server revenue increasing by over 60 percent.

In addition, smartphone and wearable device manufacturers have been racing to offer products with more impressive AI capabilities, driving demand for upgrades to high-end mobile terminals. This has boosted Foxconn Industrial's precision component shipments, with sales increasing 17 percent year-on-year in the first half, according to the financial report.

The surge in demand for AI computing power has also led to explosive growth in the high-performance network equipment market. Foxconn Industrial's high-speed switches, which have a transmission speed of 800 gigabytes per second, saw sales increase nearly fourfold in the first half of the year compared to the whole of 2024, the financial report said.

Editor: Tom Litting