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.
The number of Taiwanese working in the US rose to a record high of 137,000 last year, driven largely by Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) rapid overseas expansion, according to government data released yesterday. A total of 666,000 Taiwanese nationals were employed abroad last year, an increase of 45,000 from 2023 and the highest level since the COVID-19 pandemic, data from the Directorate-General of Budget, Accounting and Statistics (DGBAS) showed. Overseas employment had steadily increased between 2009 and 2019, peaking at 739,000, before plunging to 319,000 in 2021 amid US-China trade tensions, global supply chain shifts, reshoring by Taiwanese companies and
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) received about NT$147 billion (US$4.71 billion) in subsidies from the US, Japanese, German and Chinese governments over the past two years for its global expansion. Financial data compiled by the world’s largest contract chipmaker showed the company secured NT$4.77 billion in subsidies from the governments in the third quarter, bringing the total for the first three quarters of the year to about NT$71.9 billion. Along with the NT$75.16 billion in financial aid TSMC received last year, the chipmaker obtained NT$147 billion in subsidies in almost two years, the data showed. The subsidies received by its subsidiaries —
Shiina Ito has had fewer Chinese customers at her Tokyo jewelry shop since Beijing issued a travel warning in the wake of a diplomatic spat, but she said she was not concerned. A souring of Tokyo-Beijing relations this month, following remarks by Japanese Prime Minister Sanae Takaichi about Taiwan, has fueled concerns about the impact on the ritzy boutiques, noodle joints and hotels where holidaymakers spend their cash. However, businesses in Tokyo largely shrugged off any anxiety. “Since there are fewer Chinese customers, it’s become a bit easier for Japanese shoppers to visit, so our sales haven’t really dropped,” Ito
OUTLOOK: Pat Gelsinger said he did not expect the heavy AI infrastructure investments by the major cloud service providers to cause an AI bubble to burst soon Building a resilient energy supply chain is crucial for Taiwan to develop artificial intelligence (AI) technology and grow its economy, former Intel Corp chief executive officer Pat Gelsinger said yesterday. Gelsinger, now a general partner at the US venture capital firm Playground Global LLC, was asked at a news conference in Taipei about his views on Taiwan’s hardware development and growing concern over an AI bubble. “Today, the greatest issue in Taiwan isn’t even in the software or in architecture. It is energy,” Gelsinger said. “You are not in the position to have a resilient energy supply chain, and that,
RSS