Taipei: Shareholders of Taiwan-based manufacturing giant Hon Hai Precision Industry Co. approved a proposal to issue a record high cash dividend per share of NT$7.2 (US$0.22) on the company's 2025 earnings.
According to Focus Taiwan, the NT$7.2 cash dividend marked the highest since Hon Hai, internationally known as Foxconn, went public on the Taiwan Stock Exchange in 1991. Based on its 2025 earnings per share of NT$13.61, the dividend payout ratio will be 52.90 percent, marking the seventh consecutive year the company had a payout ratio of higher than 50 percent. The iPhone assembler and AI server is expected to issue a total of NT$100.93 billion in cash dividends.
In 2025, Hon Hai recorded a new high for net profit of NT$189.35 billion, a 24 percent increase from the previous year, resulting in earnings per share of NT$13.61. Its consolidated sales of NT$8.1 trillion, a rise of 18 percent from a year earlier, also reached new heights.
In its annual report, Hon Hai projected strong growth in AI infrastructure spending globally this year, citing its automated production capabilities and global supply network as key supports for its clients in AI. Speaking at the annual meeting, Hon Hai Chairman Young Liu highlighted that AI applications are expected to drive up the company's bottom line to exceed NT$20 in earnings per share within two years, following five consecutive years of exceeding NT$10 in EPS in 2025. Liu emphasized AI as a core facet of the company's development over the past decade, continuously launching competitive applications and products.
Currently, Hon Hai holds a more than 40 percent share of the global AI server market, according to Liu. He mentioned that shipments of AI server racks are expected to double in 2026 from the previous year, as the company leverages over US$700 billion in capital expenditure by Amazon, Microsoft, Google, and Meta this year.
Liu further noted that Hon Hai invests over NT$100 billion annually in research and development, which constitutes 1.5 percent to 2 percent of the company's annual revenue. Hon Hai currently operates 241 production sites worldwide, producing a variety of products, including EVs, an AI data center ecosystem, aerospace products, and semiconductors, under a "build, operate, localize" model to address challenges posed by "a single country's tariff policies."