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.
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
Meta Platforms Inc offered US$100 million bonuses to OpenAI employees in an unsuccessful bid to poach the ChatGPT maker’s talent and strengthen its own generative artificial intelligence (AI) teams, OpenAI CEO Sam Altman has said. Facebook’s parent company — a competitor of OpenAI — also offered “giant” annual salaries exceeding US$100 million to OpenAI staffers, Altman said in an interview on the Uncapped with Jack Altman podcast released on Tuesday. “It is crazy,” Sam Altman told his brother Jack in the interview. “I’m really happy that at least so far none of our best people have decided to take them
PLANS: MSI is also planning to upgrade its service center in the Netherlands Micro-Star International Co (MSI, 微星) yesterday said it plans to set up a server assembly line at its Poland service center this year at the earliest. The computer and peripherals manufacturer expects that the new server assembly line would shorten transportation times in shipments to European countries, a company spokesperson told the Taipei Times by telephone. MSI manufactures motherboards, graphics cards, notebook computers, servers, optical storage devices and communication devices. The company operates plants in Taiwan and China, and runs a global network of service centers. The company is also considering upgrading its service center in the Netherlands into a
RSS