Taiwan-based manufacturing giant Hon Hai Precision Industry Co (鴻海精密) has invested US$142 million (NT$4.69 billion) in Texas, which industrial sources close to the deal said was aimed at expanding its artificial intelligence (AI) server capacity.
In a statement filed Monday with the Taiwan Stock Exchange, where Hon Hai shares are traded, the company said it had acquired an 86.34-acre lot in Houston and a 1-million-square-feet building through its cloud solution subsidiary Ingrasys Technology Inc.
While Hon Hai, better known as Foxconn globally, did not specify the purpose of the investment, saying only that it was for operational needs, the sources said it would be used to expand AI server production to initially cater to clients in North America, except Apple Inc.
Photo: Reuters
In late February, Apple announced it would partner with Hon Hai to build an AI server assembly plant in Houston by 2026, with products rolled out by the 250,000-square-feet facility to be used to support Apple's data centers.
Before Monday's announcement, Ingrasys Technology previously acquired a building and piece of land in Sunnyvale, California for US$128 million, with industrial sources saying the investment was also made to boost AI server capacity.
According to Hon Hai, it is currently expanding AI server capacity in several areas, including Taiwan, the US, Mexico and Vietnam, to give the company flexibility in adjusting high-end AI server production based on market conditions.
At an investor conference held on March 14, Hon Hai said it expected AI server sales of more than NT$1 trillion (US$30.30 billion) this year amid the current boom in demand for AI.
Hon Hai, the world's largest contract electronics maker, said the AI servers it assembles are expected to account for 50 percent of its total server revenue and seize a share of over 40 percent of the global AI server market this year.
Last year, Hon Hai posted a new high of NT$6.86 trillion in consolidated sales, up 11 percent from the previous year.
Hon Hai started investing in the US in 1985 before it went to China in 1988.
Hon Hai has since invested in 24 countries around the world and operates 233 facilities.
According to Hon Hai Chairman Young Liu (劉揚偉), the company spent more than NT$340 billion in capital expenditure to expand production worldwide from 2022 to last year and its global expansion is expected to make it resilient amid US tariff threats.
FUKUOKA SITUATION: Japanese media reported that the pathogen is expected to be identified by the summer, while the CDC downplayed the idea that it was hMPV A “mysterious cold-like illness” reported in Japan’s Fukuoka Prefecture does not seem to be a new disease, but Japanese authorities have been asked about the situation, the Centers for Disease Control (CDC) said yesterday. The Fukuoka Prefectural Medical Association on Wednesday told a news conference that a “mystery cold” that has become a hot topic on social media is “highly likely to be caused by some kind of viral infection,” Japan’s KBC News reported. “Many people are experiencing symptoms starting with a sore throat, followed by a runny nose, phlegm and a severe cough,” KBC News reported, citing association officials. Health authorities are
Nvidia Corp CEO Jensen Huang (黃仁勳) arrived in Taiwan yesterday ahead of upcoming AI and technology events, saying he plans to meet with clients and Taiwan Semiconductor Manufacturing Co Chairman C.C. Wei (魏哲家) during his visit. After landing at Taipei Songshan Airport, Huang posed for photos with fans and handed out Yakult drinks to reporters and supporters waiting at the scene, saying he has “a lot to do” during the trip. Asked about reports that Nvidia’s planned headquarters site in Taipei’s Beitou Shilin Technology Park could break ground on May 27, Huang said that if the company holds an event, he would
The Ministry of Finance this afternoon announced the winning numbers for the March-April uniform invoice lottery. The winning number for the NT$10 million (US$318,060) special prize is 19531471, and the winning number for the NT$2 million grand prize is 85941329. Three numbers were drawn for the NT$200,000 first prize: 07225810, 20231230 and 83518781. Those with receipts matching the last seven digits of any of the first-prize numbers will win the NT$40,000 second prize, while those matching the last six digits will win the NT$10,000 third prize. Those whose receipts match the last five digits of the first-prize numbers can claim the NT$4,000 fourth prize,
Former president Ma Ying-jeou (馬英九) yesterday expressed “shock and regret” over a statement issued by his wife without his consent, and rejected her assertion that his eldest sister, Ma Yi-nan (馬以南), would manage his medical care or act as his spokesperson amid an ongoing embezzlement probe into his foundation. Ma Ying-jeou in a statement said he was shocked by a statement by his wife, Chou Mei-ching (周美青), regarding his affairs. Ma Yi-nan “must not” be in charge of his healthcare and other personal affairs, nor can she be allowed to represent the Ma family, the former president said. He said he was also
RSS