FOXCONN’S LARGEST REVENUE SOURCE IS NOW AI SERVERS AND CLOUD HARDWARE Q1 revenue rose 29% YoY to about $67B. Net profit rose 19% YoY to about $1.6B. Cloud and networking products, including AI servers, made up almost half of total revenue. Smart consumer electronics, including smartphones, were about one-third. Foxconn said next-gen AI server rack shipments for a major client are slated to begin in Q3.

🔥 Amid reports that #Foxconn# may have accelerated #CPO# rack deliveries to #NVIDIA#, the company said at its earnings call that silicon photonics CPO switches remain on track for Q3 mass production, with 2026 shipments expected to hit 10,000 units.💡More: 🔗

Reuters: The U.S. cleared about 10 Chinese firms, including Alibaba, Tencent, ByteDance and to buy $NVDA H200 chips, with Lenovo and Foxconn approved as distributors. No deliveries have happened yet as Beijing scrutiny keeps deals stalled.

JUST IN: U.S. approves around 10 Chinese firms to purchase $NVDA H200 chips, sources say $BABA, ByteDance, $TCEHY Tencent, and $JD among Chinese companies approved by the U.S. to buy NVIDIA H200 chips, sources say Lenovo, Foxconn, and other distributors also received U.S. approval to purchase NVIDIA H200 chips, sources say

JUST IN: 10 CHINESE FIRMS HAVE BEEN APPROVED TO BUY NVIDIA H200 CHIPS. NOT A SINGLE DELIVERY HAS BEEN MADE. Beijing has been telling its companies to hold off. The full picture, per Reuters: The approved buyers (~10 total): • Alibaba $BABA • Tencent • ByteDance (private) • JD. com $JD • 6 others not named in the report The approved distributors: • Lenovo • Foxconn • Each approved customer can purchase up to 75,000 chips under U.S. licensing terms Why no deliveries have happened: • Chinese firms pulled back after guidance from Beijing • Beijing wants to keep AI investment focused on domestic chips like Huawei's • DeepSeek and other Chinese AI labs are increasingly pivoting to homegrown chips • Two recent State Council supply chain security regulations are tightening scrutiny of foreign tech dependencies The deal mechanics: • Trump negotiated 25% of revenue from chip sales going to the U.S. • Chips must physically pass through U.S. territory before being shipped to China • Buyers must demonstrate "sufficient security procedures" and no military use • NVIDIA $NVDA must certify sufficient U.S. inventory The bigger picture: • Before U.S. export curbs, NVIDIA had ~95% of China's advanced chip market • China was 13% of NVIDIA's revenue at peak • Huang has estimated China's AI market alone is worth $50 billion this year • NVIDIA's share of AI accelerators in China has effectively fallen to zero • Huang is currently in Beijing with President Trump for a summit with Xi Jinping