Foxconn Invests $33M in Texas to Expand AI Server Production

On the evening of November 26, Foxconn (Hon Hai Precision Industry Co., Ltd.) announced that its subsidiary has invested $33.03 million (approximately 10.7 billion New Taiwan Dollars or 2.4 billion RMB) to acquire land and a facility in Harris County, Texas, USA. This investment is aimed at expanding production lines for AI servers, specifically catering to the needs of North American customers.

The announcement was made by Foxconn's U.S. subsidiary, Foxconn Assembly LLC, based in Houston, Texas. The company acquired approximately 478,000 square feet of land and a 202,000 square-foot facility. Foxconn emphasized that the primary purpose of this investment is to meet operational demands as part of its expansion strategy.

Earlier this year, in late August, Foxconn also disclosed an investment of $253 million by its subsidiary Cloud Network Technology USA Inc., securing a stake in Foxconn Assembly LLC.

At the 2024 GTC conference, NVIDIA unveiled its new GB200 AI server architecture, with Foxconn as the main manufacturing partner. This shift represents a move away from selling individual AI servers to providing complete server rack solutions. As a result, large manufacturers with integrated capabilities for full-rack production and vertical integration will have a competitive advantage in securing orders.

In mid-November, Foxconn Chairman Young Liu indicated that major cloud service providers (CSPs) are continuing to invest heavily in AI infrastructure. Coupled with trends like sovereign AI, Foxconn's order visibility has improved significantly since its August earnings call. As a result, Foxconn expects significant operational growth this year and continued strong performance into the next year. With increasing demand for AI products and electric vehicles requiring regional manufacturing capabilities, Foxconn plans to continue expanding its investments in the United States.