Foxconn wins SpaceX AI server manufacturing order for the first time, valued at $52 billion.

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Hon Hai once again secured a major AI order, entering the SpaceX supply chain for the first time. This not only fills a key gap in its roster of major global cloud service clients but will also expand its AI business beyond previous market expectations.

According to Taiwan's Economic Daily, SpaceX CEO Elon Musk plans to build over 13,000 racks equipped with Nvidia GB300 AI servers. With each rack estimated at $4 million, the total order value is as high as $52 billion (approximately NT$1.7 trillion), all entrusted to Hon Hai for manufacturing. Sources indicated that previous revenue guidance for Hon Hai's AI business did not include the SpaceX order. With this large contract secured, Hon Hai's AI business momentum will significantly exceed original expectations.

This order holds strategic significance for Hon Hai. Previously, Dell and Super Micro, both American companies, dominated the contract manufacturing of SpaceX's AI servers. Hon Hai's entry breaks this pattern, and completes its order coverage among major North American cloud customers. Hon Hai typically does not comment on individual client activities, only emphasizing the strong order growth for its AI server business.

Order Scale and Delivery Timeline

Reports state that SpaceX continues to expand its computing power this year, raising the GB300 order to about 13,000 racks, with deliveries expected to take place from the second half of this year to the first quarter of next year. To meet this need, SpaceX proactively approached Hon Hai Group to negotiate AI server manufacturing.

While expanding its computing power, SpaceX is also simultaneously broadening its computing power leasing services. Recently, it has begun negotiations with the US Department of Defense to provide AI data center computing power to help the Pentagon advance AI model deployment. It has also signed similar agreements with Anthropic and Google and plans to greatly expand its cloud computing business.

Performance Visibility Continues to Improve

Investors note that Hon Hai Chairman Liu Yangwei’s previous AI business revenue guidance did not include the SpaceX order. With the confirmation of this order, market expectations for Hon Hai's performance in the second half of this year and next year have room to rise.

As disclosed in financial data, Hon Hai’s net profit after tax in the first quarter of this year reached NT$49.919 billion, a record high for the same period, up 10% quarter on quarter and 19% year on year, with earnings per share of NT$3.56, mainly benefiting from increased output of AI servers. Its key subsidiary, Industrial Fulian, recently announced a performance increase forecast for the first half of 2026, projecting the net profit attributable to the parent company in the second quarter to be RMB 12.8 to 13.8 billion, up 86% to 101% year on year, indicating that Hon Hai will also achieve outstanding results in the second quarter.

Liu Yangwei previously forecast that Hon Hai’s global AI server market share will exceed 40% in 2026, with annual AI rack shipments expected to multiply, and quarterly shipments rising toward the year-end. Currently, cloud networking products centered on AI servers have become the largest sector among Hon Hai's four main business lines, with expectations that its proportion will continue to increase.

Technical Ecosystem Supports Long-term Competitiveness

Behind Hon Hai’s large-scale AI server orders is its vast, globally distributed manufacturing capacity, plus its proprietary technologies in optical communications, cooling, and other key AI solutions, enabling it to provide one-stop services for clients.

Notably, Hon Hai is making a major push this year into the co-packaged optics (CPO) market, a technology seen as the core solution for next-generation high-speed data transmission and an important technical reserve for Hon Hai to further expand its AI infrastructure business. Investors are generally optimistic that, boosted by the SpaceX order, Hon Hai’s performance momentum in the second half of the year will continue to exceed expectations.

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