Foxconn to invest more in Mexico, likely to expand AI server capacity

Taipei, March 24 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co. (Foxconn) has invested an additional US$136 million in Mexico through its Singapore subsidiary, which sources said is likely aimed at boosting AI server production there.

In a statement posted on the Taiwan Stock Exchange on Monday, where Hon Hai shares are traded, the company said it has raised its stake in FII AMC Mexico S. de R.L. de C.V. by US$124 million through subsidiary Cloud Network Technology Singapore Pte. Ltd.

FII AMC Mexico is a unit of Hon Hai's cloud service subsidiary Foxconn Industrial Internet Co. (FII).

Hon Hai also invested an additional US$12.72 million through the Singapore subsidiary to take a stake in Ingrasys Technology Mexico, part of Hon Hai's cloud subsidiary Ingrasys Technology Inc., the statement said.

Hon Hai did not explain the reason for the investment, only saying that the moves were part of its long-term investment plan, but industrial sources said the company was intent on boosting capacity in Mexico to meet demand from clients in North America.

Hon Hai has announced a series of investment deals in Mexico since 2024, with the funds thought to be aimed at building production capacity for AI servers.

Among these deals, Hon Hai poured US$168 million into FII AMC Mexico in August 2025 through the Singapore subsidiary, and it spent about NT$827 million (US$25.84 million) in February 2024 to acquire land in Mexico.

At an investor conference held on March 16, Hon Hai Chairman Young Liu (劉揚偉) said the company's AI server rack shipments were expected to grow at a "high double-digit" pace sequentially in the first quarter of 2026.

Liu said that for 2026 as a whole, AI server rack shipments could double from a year earlier, giving the company a higher global market share.

Hon Hai currently has about a 40 percent share of the global AI server market.