Hon Hai Precision Industry Co (鴻海精密) has increased its investment in India and Vietnam, which sources said were likely made to expand capacity for Apple Inc products and artificial intelligence (AI) servers.
Since Oct. 25 last year, the company has bought US$32.26 million in equipment from Apple Operations Ltd for its Indian operation through subsidiary Foxconn Hon Hai Technology India Mega Development Private Ltd, Hon Hai said in a regulatory filing on Tuesday.
While the company said the purchases were made to meet operational needs, the sources believed the investment was made to support AirPods production for Apple in India.
Photo: Bloomberg
India’s news media last month reported that Hon Hai was scheduled to begin manufacturing AirPods this month in a facility in Hyderabad, the capital and largest city of the Indian state of Telangana.
The reports said AirPods would be the second Apple product Hon Hai rolls out in India after iPhones.
The sources said Hon Hai, also known globally as Foxconn Technology Group (富士康科技集團), has repeatedly purchased equipment from Apple Operations, and that previous purchases were for iPhone production in India.
Hon Hai has also injected an additional US$23.4 million into Fulian Precision Technology Co in Vietnam through another subsidiary — Ingrasys (Singapore) Pte Ltd — as a long-term investment, the filing showed.
Fulian Precision was set up in 2023 in Vietnam’s Quang Chau Province, and specializes in producing servers and server racks, as well as communications devices.
The sources said Hon Hai’s increasing investments in Vietnam were aimed at expanding its AI server production.
AI servers are expected to account for 50 percent of Hon Hai’s total server revenue and seize a more than 40 percent share of the global AI server market this year, as the company expands AI server capacity in several areas, including Taiwan, the US, Mexico and Vietnam, it said.
After several years flying high as Asia’s best Nvidia Corp proxy, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is increasingly vying with other artificial intelligence (AI) stocks for investor attention. Stock traders are chasing a wider array of beneficiaries as mainstream usage of AI creates demand for hardware beyond the most-advanced chips TSMC makes for Nvidia. Subthemes from the deepening memory crunch to advances in robotics are also luring bids. At the same time, investment caps on single stocks are pushing funds to diversify, while retail investors long familiar with TSMC through its US depositary receipts are being offered a broader set of
Netherlands-based semiconductor equipment supplier ASML Holding NV yesterday said that it is planning to hire an additional 1,000 people in Taiwan this year in response to growing demand from clients. ASML had previously planned to recruit 600 people this year, but that the plan has been adjusted upward, ASML vice president and ASML Taiwan general manager Grace Wang (汪佳慧) told reporters. ASML has a workforce of more than 4,500 in Taiwan, accounting for about 10 percent of its global total, Wang said. This year’s recruitment campaign would focus on adding people in the customer support, manufacturing and supply chain domains to assist ASML
UNDER MICROSCOPE: Taiwan detained three people who allegedly conspired to buy servers in Taiwan and export them using fraudulent documentation, prosecutors said Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Saturday urged Super Micro Computer Inc to tighten up on compliance after Taiwan detained three people this week for allegedly making fraudulent declarations about artificial intelligence (AI) servers made by its US partner. The development marked the nation’s first crackdown on semiconductor smuggling, which grew after the US slapped restrictions on exports of high-end chips such as Nvidia AI accelerators to China. Nvidia is “rigorous” in explaining regulations to all of its partners, Huang told reporters after arriving in Taipei. “Ultimately Super Micro has to run their own company,” he said in response to
Nvidia Corp yesterday announced that CEO Jensen Huang (黃仁勳) would attend an employee meeting in Taipei tomorrow to celebrate the launch of the company’s Taiwan headquarters project. Huang would attend a gathering at the site of Nvidia’s planned headquarters in Beitou Shilin Technology Park (北投士林科技園區), the company said in a statement. After arriving in Taiwan on Saturday last week, Huang told reporters that he plans to meet with Quanta Computer Inc (廣達) chairman Barry Lam (林百里) and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) chairman C.C. Wei (魏哲家), and would attend the groundbreaking ceremony for Nvidia’s Taiwan headquarters tomorrow. Nvidia has not yet applied
RSS