Hon Hai invests additional NT$11.3 billion in U.S.

Taipei, Dec. 31 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co. said on Monday that it has invested an additional NT$11.3 billion (US$345 million) in the U.S. market to extend its global footprint.

In an announcement posted on the Taiwan Stock Exchange (TWSE), where Hon Hai shares are traded, the iPhone assembler said through its subsidiary FII Holdings USA Inc., the world's largest contract electronics maker poured the funds into eight other units in the U.S. market to acquire their common shares.

The eight American units that secured more funds from Hon Hai included Cloud Network Technology USA Inc., Ingrasys Technology USA Inc., PCE Paragon Solutions (USA) Inc., and NWE Technology Inc., NSG Technology Inc.

While Hon Hai, also known as Foxconn on the global market, which has rolled out artificial intelligence servers, did not disclose the purpose behind the investments, industrial sources said the funds will be used to expand its AI server production capacity in the U.S. market in a bid to promptly respond to policies introduced by U.S. President-elect Donald Trump when he returns to the White House in January.

In November, Hon Hai announced it spent US$33.03 million to acquire a parcel of land and a factory in Harris County, Houston, with analysts saying the investment seeks to raise AI production capacity to cater to customers in North America.

Hon Hai Chairman Young Liu (劉揚偉) said at an investor conference in mid-November that the company will pour more funds into the United States, setting its sights on artificial intelligence and electric vehicle development.

After Donald Trump is sworn in and announces his policies, Hon Hai will come up with a comprehensive investment plan in the U.S. market.

According to Hon Hai, the company has invested in the U.S. market for almost 40 years, where it operates 50 facilities and employs almost 5,000 employees, generating US$25.6 billion in sales per year.

In recent years, Hon Hai has intensified its efforts in electric vehicle development as part of its "3 plus 3" strategy to diversify from contract manufacturing into hardware and software capabilities.

The initiative covers three emerging industries -- electric vehicles, robots and digital health care -- which the company said it is developing via AI, semiconductor and communications technologies, with electric vehicles as the core business.