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.
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