Is mass production of equipment for the next-generation 5G telecom networks set to start? Leading electronic supplier Foxconn may think so.

Foxconn Industrial Internet, a unit of the world's largest contract electronics manufacturer, said Monday that it received orders for 5G gear from more than two “world-class customers.” The equipment is for delivery this year. The company didn’t identify the customers.

Zheng Hongmeng, general manager of Foxconn Industrial, said the rollout of 5G technology will bring new demand for advanced servers and data processing facilities. The company will further expand investments in development of software and hardware related to 5G, Zheng said.

Shanghai-listed Foxconn Industrial earlier reported 17% growth in revenue and a 6.5% rise in net profit for 2018. Analysts attributed to the performance to rising demand from global markets amid the continued expansion of 4G, data centers and cloud services.

Foxconn Industrial said in its annual report that it completed key research in 2018 on the early-stage development of 5G base stations and terminals.

Global telecom giants have raced to establish beachheads in the new 5G era. A report by Tianfeng Securities found that 211 telecom operators in 87 countries and regions are investing in 5G services, including 15 that have rolled out pilot projects. In China, the three telecom carriers have set plans to invest a total of 33 billion yuan ($4.9 billion) this year in 5G projects.

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