Foxconn invests US$168 million more in Mexico, likely for AI servers

Taipei, Aug. 26 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co. (Foxconn) has invested an additional US$168 million in Mexico, likely to expand production of AI servers, according to a source close to the matter.

In a statement posted Monday on the Taiwan Stock Exchange where Hon Hai shares are traded, the company said it injected US$168 million through subsidiary Cloud Network Technology Singapore into FII AMC Mexico.

The Mexican company is owned by another Hon Hai cloud solutions subsidiary, Foxconn Industrial Internet Co. (FII).

It was the second time Hon Hai injected funds into the Mexican market in August. On Aug. 13, it poured about US$45 million into FII AMC Mexico, through which it controls a large AI server production site.

In addition to Mexico, Hon Hai, through subsidiaries Foxconn Assembly LLC and TDC Innerbelt NW 34 Partners, LLC., is leasing two factories with a total floor area of 601,600 square meters located in Houston.

In May, iPhone assembler Hon Hai, which has intensified its efforts to diversify its product portfolio in recent years, announced it was partnering with U.S.-based AI chip designer Nvidia Corp. to build a state-of-the-art AI factory supercomputing center in Taiwan.

At an investor conference held earlier this month, Hon Hai reiterated that AI server revenue is expected to top NT$1 trillion (US$32.82 billion) in 2025, up more than 50 percent from a year earlier, and that sales growth momentum would continue into 2026 and over the long term.

As Hon Hai has expanded globally, extending its production bases to Mexico, Vietnam, India and Europe, company Chairman Young Liu (劉揚偉) said he has faith that it will remain resilient amid tariff and foreign exchange challenges.

Through regionalized manufacturing, Hon Hai has 223 plants and offices in 24 countries around the world, with 54 locations in the Americas, 12 in Europe and 12 in India.