Apple, which has established itself as a consumer electronics behemoth over the past decade, has propelled Hon Hai into the world’s largest contract manufacturer. Despite its entrenched position in Apple, which accounts for around 50% of the group’s revenue, Hon Hai was faced with increasing competition in the traditional assembly business at a time when smartphone demand had matured. As a result, its returns on invested capital fell to 11% in 2023 from 23% in 2016 but AI server demand has seen these returns rebound to 16% in 2025.