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Foxconn unit Industrial Internet eyes strong 2026, declares 'CPO元年'

From Liberty Times · (15h ago) Chinese Positive tone

Translated from Chinese, summarized and contextualized by DistantNews.

TLDR

  • Foxconn's Industrial Internet (FII) anticipates strong growth in 2026, driven by AI demand.
  • Chairman Young Liu declared 2026 the "CPO元年" (元年 means 'first year') for FII, signaling a major shift towards Co-Packaged Optics.
  • The company is investing heavily in AI infrastructure, including servers, cabinets, and liquid cooling solutions.

Foxconn's Industrial Internet (FII) is positioning itself at the forefront of the artificial intelligence revolution, with Chairman Young Liu boldly declaring 2026 as the "CPO元年" – the inaugural year for Co-Packaged Optics. This strategic pivot underscores FII's transformation into an AI-centric enterprise, poised to capitalize on the explosive demand for AI infrastructure. The company's recent performance, with cloud computing revenue soaring 88.70% and AI server revenue tripling, highlights its significant role in the current tech landscape.

2026 will be the CPO元年 for Industrial Internet.

— Young LiuChairman Young Liu declared 2026 as a pivotal year for Industrial Internet's (FII) adoption of Co-Packaged Optics (CPO) technology.

FII's commitment to AI is evident in its substantial investments and aggressive expansion plans. The company aims to scale up AI cabinet production to over 2,000 units weekly, with order visibility extending into 2027. Furthermore, FII is enhancing its technological capabilities by increasing the adoption of liquid cooling solutions to 60% of its servers by 2026 and boosting the proportion of self-developed key components to 30%. This strategic move from assembly-centric operations to integrated manufacturing and self-sufficiency is crucial for elevating its value proposition and competitive edge.

The company has officially transformed into an AI enterprise.

— Young LiuChairman Young Liu stated that FII has completed its strategic transformation into an AI-focused company.

The company's strategic focus on Co-Packaged Optics (CPO) is particularly noteworthy. FII projects CPO product shipments to exceed 100,000 units in 2026, growing to 200,000 units by 2030. With an anticipated double-digit gross profit margin for these products (excluding IC costs), CPO is set to become a significant driver of future profitability. FII's deepening collaborations with tech giants like NVIDIA and Google, coupled with its leading position in AI server production and supply chain management, solidify its ambition to maintain its status as a global leader in AI manufacturing.

AI has become the core engine driving the growth of Industrial Internet.

— Industrial InternetThe company highlighted AI's central role in its recent business performance and future growth strategy.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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