Hon Hai Precision Industry Co. obtained a $1.1 billion three-year loan from a syndicate of 17 banks, bolstering its financial position as the company accelerates its push into AI server manufacturing, according to Bloomberg.
The fresh funding, secured through a mix of Taiwanese and international lenders, adds to the iPhone assembler’s existing debt and will support general corporate operations, according to people familiar with the matter.
The loan comes as Hon Hai, also known as Foxconn Technology Group, positions itself to capitalize on surging demand for artificial intelligence infrastructure. Chairman Young Liu told analysts that cloud-related products are expected to match the company’s phone assembly business in revenue contribution by 2025.
To strengthen its AI server capabilities, Hon Hai is constructing what it claims will be the world’s largest server assembly facility in Mexico, primarily serving Nvidia Corp.’s production needs. The company forecasts steady AI server demand through 2025.
In a parallel development highlighting its domestic expansion, Hon Hai announced plans to invest NT$15.9 billion ($500 million) in Kaohsiung for a major residential development project, marking its largest investment in Taiwan since its Taipei complex.
