Foxconn and Pegatron Lead EMS Growth Amid Rising Global Demand
- By Lipika Agarwal
- 12 May 2025
- Business
Foxconn and Pegatron Lead Electronics Manufacturing Services Growth in 2025 Foxconn and Pegatron, two Taiwanese giants in Electronics Manufacturing Services (EMS), are leading an unprecedented transformation. As global demand for advanced electronics such as artificial intelligence (AI) and electric vehicles (EVs) skyrockets, these firms are expanding operations to meet evolving market needs by diversifying operations and capabilities accordingly.
Foxconn Diversifying into AI and EV Markets
Foxconn, the world's leading EMS provider, is seeing strong growth driven by rising demand for artificial intelligence servers. Foxconn anticipates revenue of over NT$7 trillion (approximately $234 billion) by 2025 – this compares with approximately NT$6.86 trillion last year; AI servers should account for at least half of Foxconn's server revenue this year, with cloud and networking division contributions playing a large part in overall revenue growth.
Foxconn is also expanding its presence in the rapidly developing EV sector through partnerships. Most recently, they have formed an agreement with Mitsubishi Motors to release an EV designed by Foxconn in 2026 and are exploring collaboration opportunities with Nissan. These moves position Foxconn as an integral player in this rapidly developing sector of manufacturing.
Pegatron: Expanding Global Footprint
As another leading EMS provider, Pegatron has taken advantage of the rising demand for advanced electronics by expanding production capacity, particularly electric vehicle components, in response to market requirements.
Pegatron announced on November 27 that they have entered into an essential partnership with Tata Electronics by purchasing 60% of Pegatron's iPhone manufacturing plant in Chennai, India, from Tata Electronics for USD 40.5 million. This significant development enhances Tata Electronics' role as one of Apple's key suppliers while marking Pegatron's strategic expansion within India's manufacturing capabilities.
Industry Forecast
The EMS industry is currently witnessing a shift towards high-tech manufacturing driven by advances in AI, cloud computing, and electric vehicles. Companies like Foxconn and Pegatron are investing heavily in these areas to stay competitive and meet rising global demand; their strategic expansions and partnerships are creating the framework for continued innovation within the EMS market.
