Foxconn injects new funds into U.S. unit, said to be AI-server related

Taipei, March 31 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co. (Foxconn) has increased its investment in a subsidiary in the United States, which an industrial source said was aimed at expanding AI server production.

In an announcement filed with the Taiwan Stock Exchange, where shares of Hon Hai are traded, the company said Monday that it has invested another US$295 million in Foxconn Assembly LLC through another subsidiary, Cloud Network Technology Singapore PTE. Ltd.

Foxconn Assembly LLC is based in Houston, according to Hon Hai's annual report.

Though Hon Hai did not disclose the purpose of the investment, the source said the company did it to expand its AI server production for North American clients.

At the Hill & Valley Forum held in Washington last week, Hon Hai Chairman Young Liu (劉揚偉) said his group currently has a workforce of about 8,000 in the U.S., with the number to top 10,000 by the end of 2026 to tap into the growing AI market and roll out robots.

With 50 facilities in 18 U.S. states, Hon Hai is making the U.S. its biggest AI production base and is expected to generate about US$100 billion in revenue in the country in 2026, Liu said.

While Hon Hai has not officially disclosed the amount it has invested in the U.S., analysts have estimated total investment has reached several billion U.S. dollars.

At present, Hon Hai runs 223 factories in 24 countries and has total annual sales of about US$260 billion while accounting for more than 40 percent of the world's AI server market, according to Liu.