Hon Hai metal casing unit to invest US$1B in U.S. over 10 years

Taipei, Aug. 9 (CNA) Foxconn Technology Co., a metal casing supplier owned by Taiwan's Hon Hai Precision Industry Co., has announced plans to invest US$1 billion in the United States over the next 10 years.

The Apple supplier said in a statement that its board approved the plan Thursday as part of a strategy to transform its business.

Foxconn Technology said the investment will target precision mold development, smart manufacturing, robotics and advanced automation, with a focus on AI. Foxconn Technology added it aims to create a flexible, intelligent production ecosystem to enhance competitiveness and sustainability.

Foxconn Technology said it will integrate its precision hardware expertise with AI software to develop precision products, cooling solutions, and applications in robotics, drones and high-end healthcare.

Acting President Pan Yen-jen (潘彥仁) said the investment will help expand the company's presence in North America, enhance supply chain cooperation and accelerate its digital transformation. He added that the U.S. remains a key base for upgrading technology and driving innovation.

Foxconn Technology also said its subsidiary Q-Run Holdings Ltd. will spend US$10 million for a 6.6 percent stake in Israel-based robotics developer RoboTemi Global.

In the first half of 2024, the company's sales surged 218 percent from a year earlier to NT$71.22 billion (US$2.39 billion), boosted by the launch of Nintendo's Switch 2 console.

However, a stronger Taiwan dollar pushed net profit down 12.8 percent to NT$1.49 billion or NT$1.06 per share.

Foreign exchange losses also dragged its gross margin -- the difference between revenue and cost of goods sold -- to 2.97 percent in the second quarter, down 5.94 percentage points year-on-year.

In addition, its operating margin -- the difference between sales and cost of goods sold and operating expenses -- fell to 0.95 percent, down 2.54 percentage points.