Hungary's recent export recovery has been driven primarily by AI-related server manufacturing rather than the country's automotive industry, financial website Portfolio.hu wrote after the KSH released industrial data for May.

The detailed reading by the statistics office showed the production of the computer, electronics and optical equipment segment, which accounted for 15% of manufacturing, surged 43%, boosted by production of peripherals.

Growth was reportedly fuelled by rising output by Cloud Network Technology, a Foxconn subsidiary operating a manufacturing facility in Komarom, bordering Slovakia. The company produces server systems used in AI infrastructure and is a major global cloud service provider.

The company, set up in 2017 has become one of Hungary's fastest-growing electronics manufacturers as global demand for AI servers, cloud computing infrastructure and networking equipment has surged. Foxconn says headcount exceeded 2,000 in 2025 after hiring more than 900 workers, making it one of the largest employers in the region.

The plant forms part of Foxconn's strategy to diversify manufacturing closer to European customers while reducing dependence on Asian production. The company also fits into Hungary's broader strategy of attracting high-value electronics manufacturing alongside automotive investments, with the government supporting expansion through investment incentives and workforce development.

The company says it is investing in advanced manufacturing technologies and AI-enabled production processes. It has also taken part in discussions with the Hungarian government on AI and industrial policy.

Public data showed that Cloud Network Technology is Hungary's third-largest company by revenue in 2025, behind energy groups MOL and MVM as it booked HUF2.6 trillion (€7.2bn) in sales.

The KSH on July 14 confirmed that headline industrial output edged down 0.4% y/y in May, but rose 5.4% when adjusted for the number of workdays. On a monthly basis output increased by 2.3% and edged up 0.7% in the first five months.

Broken down by sectors, output of the automotive industry, Hungary's biggest manufacturing sector with a 25% weight, inched up 0.7% y/y.

After bottoming out in late 2025, Hungary's industrial sector has returned to growth, boosting exports. While the recovery has coincided with a rebound in vehicle production, the automotive sector accounts for only about 28% of export growth recorded so far this year.

Output of the food, drinks and tobacco products segment, making up 12% of manufacturing, slipped 4.5%. Output of the electrical equipment segment, accounting for 8.6% of manufacturing, declined 5.3%.

New orders in the manufacturing sectors surveyed rose 13.6% y/y in May, driven by a 15.8% increase in export orders, while domestic orders edged up 1.6%. Total order books at the end of the month were 41% higher than a year earlier.