Foxconn forecasts its AI server business will at least double in the second half of this year, making the world’s biggest contract electronics manufacturer — best known for making the iPhone — the latest beneficiary of the rapid rise of generative artificial intelligence systems such as ChatGPT.

“We could see triple-digit growth in AI servers in the second half,” said Foxconn chair Young Liu at the company’s annual meeting on Wednesday. Demand for processors in such servers has boosted chip designer Nvidia to become the most valuable semiconductor company, with its market capitalisation briefly breaching the $1tn mark on Tuesday.

Liu said the fast spread of generative AI systems such as ChatGPT and users’ increasing reliance on them was driving the boost in demand.