Hon Hai Precision Industry Co (鴻海精密), known internationally as Foxconn Technology Group (富士康科技集團), has increased its investment in a subsidiary in the US, which an industry source said was aimed at expanding artificial intelligence (AI) server production.
Hon Hai has invested another US$295 million in Foxconn Assembly LLC through another subsidiary, Cloud Network Technology Singapore Pte Ltd (鴻運科), the company said yesterday in a filing with the Taiwan Stock Exchange.
Foxconn Assembly is based in Houston, Texas, Hon Hai's annual report showed.
Photo: Ritchie B. Tongo, EPA-EFE
Though Hon Hai did not disclose the purpose of the investment, the source, speaking on condition of anonymity, said that the company did it to expand its AI server production for North American clients.
At the Hill & Valley Forum held in Washington last week, Hon Hai chairman Young Liu (劉揚偉) said his group has a workforce of about 8,000 in the US, with the number expected to top 10,000 by the end of this year to tap into the growing AI market and roll out robots.
With 50 facilities in 18 US states, Hon Hai is making the US its biggest AI production base and is expected to generate about US$100 billion in revenue in the country this year, Liu said.
While Hon Hai has not officially disclosed the amount it has invested in the US, analysts have estimated total investment has reached several billion US dollars.
Hon Hai runs 223 factories in 24 countries and has total annual sales of about US$260 billion, while accounting for more than 40 percent of the world's AI server market, Liu said.
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