In the news on July 17th, Nvidia expanded the deployment of Blackwell architecture GPUs, leading to a synchronous increase in shipments of AI servers based on GB200 chips, marking that AI servers based on GB200 chips are about to enter the mass production stage.
It is reported that the unit price of these servers will be more than 10 times that of traditional servers, and as one of the main contract manufacturers of Nvidia servers, Foxconn is expected to achieve explosive growth in its performance by 2025. The industry expects that by 2025, Hon Hai's cloud network division will account for a record high of 45% to 50% of the overall OEM business revenue, marking the first reversal in Hon Hai's revenue structure in 18 years. The server business will become Hon Hai's largest revenue contributing product.
From the perspective of the number of terminal server cabinets, the shipment volume has increased from the originally expected 40000 units to 60000 units, an increase of up to 50%. Among them, GB200 NVL36 server cabinets have the highest shipment volume, reaching 50000 units. The industry estimates that the average selling price of GB200 NVL36 server cabinets is $1.8 million, while the selling price of GB200 NVL72 server cabinets is as high as $3 million. So the current market demand for high-end AI servers is as high as (6 * 300), with a production value of about 180 billion US dollars. The upstream, midstream, and downstream of this industry chain alone is enough to support the next few years. As a former supplier of intelligent logistics solutions for Hongbai Technology, the rise of the AI industry has not only driven the increase in revenue and proportion of Foxconn, but also provided opportunities for the development of Aisdak. Foreign investment banks estimate that the outsourcing business of GB200 servers will account for 20% to 25% of Foxconn's total outsourcing business revenue in 2025, thereby driving the revenue share of Foxconn's cloud network department from 30% in 2024 to 47% in 2025. Meanwhile, the revenue share of Apple products is expected to decrease from 45% to 50% to below 40%, and Foxconn will transform into a major supplier of AI servers, no longer limited to Apple's main supplier.
Since 2007, Apple's iPhone OEM business has been a key driving force for Foxconn's performance growth. As the smartphone market becomes saturated, Foxconn is shifting its focus to server product outsourcing. Especially in the context of the explosive demand for AI servers, Foxconn has rapidly driven the growth of demand for AI server and Netcom product outsourcing business. As the proportion of these products in the overall OEM business continues to climb to 50%, Foxconn's revenue structure will undergo a reversal, with server business becoming its largest business.
Hon Hai Chairman Liu Yangwei holds a highly optimistic attitude towards the positive benefits that AI will bring to the group, emphasizing that AI servers will be the next trillion New Taiwan Dollar revenue product for the group. He estimates that the revenue target of Hon Hai AI servers will exceed NT $1 trillion by 2025, driving the overall revenue to break through NT $7 trillion and reach a new high. Liu Yangwei pointed out, citing data from research institutions, that the market size of the ICT industry is close to $1 trillion, and that the AI industry will exceed $1 trillion in seven to eight years, of which hardware accounts for more than half. This is exactly where Taiwan, China manufacturers, especially Hon Hai, can play.
As a supplier of comprehensive solutions for smart logistics, Aisdak always adheres to customer needs as the core, driven by intelligent equipment and precision technology, industrial software connects data flow, data+AI algorithm empowers smart warehousing in the electronics and semiconductor industries, focuses on product quality, and serves with dedication. Aisdak helps enterprises solve practical problems encountered in the scientific, standardized, digital, automated, and intelligent upgrading of intelligent warehousing, and provides customized services for intelligent warehousing equipment. In the future, AstraZeneca will continue to leverage its advantages in technical talent and resources to contribute to the transformation and upgrading of the manufacturing industry. In this process, AstraZeneca will assist more companies in the electronics and semiconductor industries to work together and promote China's manufacturing industry to the top of the global value chain.
