Nvidia partner Hon Hai’s sales climb 52% as Europe lines up its own orders

Hon Hai reported August revenue of NT$921.8B, about $29.1B, up 52% year on year on AI server demand, well ahead of analyst expectations for the quarter. In June it signed a EUR 120M manufacturing partnership with Bull, the French state-owned computing firm, splitting work between Pardubice and Angers.x

Hon Hai reported an August revenue rise of 52% to NT$921.8B, about $29.1B, Bloomberg News reported on Saturday. July grew 54%, and analysts are looking for around 37% growth in the three months to September, so the company is running well ahead of them.

The Taiwanese company assembles Nvidia’s servers, and its monthly filing has become a check-in for the AI trade. Concerns about overcapacity, rising debt and fierce competition have grown around it, and the revenue line keeps ignoring them.

TNW reported after the second quarter that AI servers now bring in more than everything else Hon Hai makes combined.

The rest is largely Apple. Foxconn, as it is also known, remains the primary iPhone assembler on thinner margins, with plants in China and India, and Apple is spreading work towards Luxshare Precision.

Bloomberg Intelligence analysts Steven Tseng and Rebecca Wang note that the consumer electronics business dilutes the cloud momentum, leaving gross margin and forward price to earnings below the peer average.

So the order book keeps compounding while the market argues about what the spending eventually returns. Demand and confidence have come apart.

TNW has followed that argument through Big Tech’s cash flow, and Chinese investors marked the trade down this week despite the strongest earnings season in five years.

Europe is about to add to the same order book, and it has already picked its assembler.

Bull and Foxconn announced a manufacturing partnership on 1 June with an initial commitment above EUR 120M, according to Bull’s own statement.

Components and initial testing go to Foxconn’s plant in Pardubice, in the Czech Republic. Final assembly, integration and system validation happen at Bull’s factory in Angers.

Foxconn’s head of AI and quantum, Jesse Chao, said the collaboration advances “building sovereign AI infrastructure in Europe” and supports a resilient supply chain.

The French state finished buying Bull from Atos for EUR 404M in April, two months before the Foxconn announcement, and presented the purchase as a sovereignty measure.

The Commission has committed EUR 20B to AI gigafactories, with 77 proposals across 16 member states and construction of the first planned for 2027. The racks will be assembled in France from parts made in Czechia by a Taiwanese company whose monthly revenue is $29B.