Hon Hai anticipates fiscal year revenue of NT$7 trillion, buoyed by increasing demand for AI servers.
Hon Hai Precision Industry, the largest server manufacturer globally, anticipates a revenue increase exceeding NT$7 trillion this year, propelled by the burgeoning demand for artificial intelligence (AI) servers. Despite uncertainties stemming from US tariffs, exchange rates, global monetary policies, and geopolitics, the company remains optimistic about reporting significant growth in 2022, according to chairman Young Liu.
In a meeting with shareholders, Liu highlighted the robust demand for AI servers as the primary growth catalyst. The company expects revenues to surpass NT$7 trillion, surpassing last year's NT$6.86 trillion.
Beyond AI servers, stable demand for information and communications technology (ICT) and electric vehicles (EV) will also drive growth for the next three years, Liu added.
In response to a question regarding Hon Hai's progress in securing new EV orders, Liu stated that the company expects to add a second client in the near future. Furthermore, potential ties with Mitsubishi Motors Corp may lead to additional clients, making Hon Hai a potential third and fourth EV client.
Hon Hai is set to introduce its new Model C EV series for the US market in the fourth quarter of 2022, followed by a Model D in 2027.
Discussing the separation of chairman and CEO roles, Liu suggested the separation would occur over the coming three years. Hon Hai implemented a rotating CEO system in April 2021, with executives from various business units taking turns to assume the position on a temporary basis. The temporary CEOs are expected to become permanent over time.
Shareholders approved a cash dividend of NT$5.8 per share, marking the highest payout in the company's history. This represents a payout ratio of 52.68 percent based on the company's earnings per share of NT$11.01 in 2021.
Nine board members, including four new candidates and five independent directors, were re-elected during the meeting. Young was re-elected as chairman during a separate board meeting on the same day. Hon Hai semiconductor business strategist Chiang Shang-yi was appointed as a director for the first time.
[1] Global data center capital spending is projected to reach US$1 trillion by 2030, with enterprises rapidly shifting from traditional software to AI-driven solutions.[2] Hon Hai participates in Taiwan's tech ecosystem alongside TSMC, MediaTek, and others.
(AFP/Cheng I-hwa)
Photo: Cheng I-hwa, AFP
- The burgeoning demand for artificial-intelligence (AI) servers, as highlighted by Liu, is anticipated to drive Hon Hai Precision Industry's revenue beyond NT$7 trillion this year, contributing significantly to the company's projected growth in 2022.
- With the global data center capital spending projected to reach US$1 trillion by 2030 and enterprises rapidly shifting to AI-driven solutions, Hon Hai's participation in Taiwan's tech ecosystem, alongside industry leaders like TSMC and MediaTek, positions the company well for future technological advancements in artificial intelligence.
