Taipei: Taiwan-based manufacturing giant Hon Hai Precision Industry Co., also known as Foxconn, announced plans to increase investments in the United States, prioritizing artificial intelligence and electric vehicle development. At an investor conference, Chairman Young Liu stated that Hon Hai has operated in the U.S. for nearly 40 years, with 50 facilities and approximately 5,000 employees generating US$25.6 billion in annual sales. According to Focus Taiwan, Liu emphasized Hon Hai's intention to continue investing in the U.S. in a stable, long-term manner, as the company plans to expand its global operations. The Wisconsin complex will focus on AI application development, while EV operations will expand in Ohio. In 2017, Hon Hai initially pledged US$10 billion for a Wisconsin manufacturing complex, but scaled back due to market changes. Since a new agreement in 2021, Hon Hai has invested US$1 billion in Wisconsin, focusing on AI and server production, becoming Racine County's largest taxpayer. Liu express ed optimism about Hon Hai's U.S. market expansion, noting the company's global footprint in 24 countries with over 200 facilities. Hon Hai's third quarter results showed a net profit of NT$49.33 billion (US$1.52 billion), up 41 percent from the previous quarter, driven by the AI boom. Although Hon Hai aims for a 5 percent share of the global EV market with NT$1 trillion in sales by 2025, Liu indicated the target may be delayed. Hon Hai is negotiating with a Japanese car maker on EV development, with details expected soon. In October, Hon Hai unveiled two new EV models, adding to its previous designs in an effort to penetrate the EV market. Liu cited Nvidia CEO Jensen Huang on strong demand for the GB200 AI server, set for mass production next year. AI servers accounted for over 40 percent of Hon Hai's server revenue in the first nine months of the year. AI servers are projected to comprise 50 percent of server sales by 2025, becoming a key growth driver. Liu anticipates fourth-quarter sales to surpass NT$1. 85 trillion, benefiting from peak season effects.
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