Hon Hai Precision Industry, also known as Foxconn, has announced plans to expand its overseas investments by increasing capital in four subsidiaries across the United States, Mexico, India, and Europe. The total investment amounts to approximately NT$26.872 billion (US$860 million), as the company seeks to solidify its position as a global leader in electronics manufacturing services (EMS) amid growing demand for AI servers, smartphones, and electric vehicles.
The largest share of the investment will go to the United States, where Hon Hai’s subsidiary Cloud Network Technology USA Inc. has acquired equity in Foxconn Assembly LLC for US$253 million (NT$8.098 billion). This move is expected to boost production capacity at Hon Hai’s Houston, Texas plant, positioning it as a key hub for AI server manufacturing alongside facilities in Mexico and Wisconsin.
In Mexico, Hon Hai is investing US$241 million (NT$7.72 billion) through its subsidiary Cloud Network Technology Singapore Pte. Ltd., likely to enhance production at its Fii Industrial plant. The facility, which has already begun small-scale production of AI servers, is set to play a crucial role in Hon Hai’s AI server growth strategy.
In Europe, Hon Hai is injecting 180 million euros (NT$6.445 billion) into Foxconn Interconnect Technology Singapore Pte. Ltd. to support its subsidiary’s expansion in automotive electrification, particularly following the acquisition of Germany’s Auto-Kabel Group.
Additionally, Hon Hai is increasing its investment in India with a US$144 million (NT$4.609 billion) injection to support its local subsidiary. This investment comes as Hon Hai prepares to mass-produce the iPhone 16 Pro and Pro Max in India, aligning with the growing trend of AI-integrated smartphones.
These strategic investments highlight Hon Hai’s commitment to expanding its global footprint and capitalizing on emerging industry trends.
