Hon Hai Precision Industry Co (鴻海精密) has invested an additional NT$11.3 billion (US$345 million) in the US market to extend its global footprint.
In a Taiwan Stock Exchange filing on Monday, the iPhone assembler, also known internationally as Foxconn Technology Group (富士康科技集團), said it poured the funds into eight units in the US to acquire their common shares.
The eight units that secured more funds from Hon Hai included Cloud Network Technology USA Inc, Ingrasys Technology USA Inc, PCE Paragon Solutions (USA) Inc, NWE Technology Inc and NSG Technology Inc.
Photo: CNA
While Hon Hai did not disclose the purpose behind the investments, industrial sources said the funds would be used to expand its artificial intelligence (AI) server production capacity in the US in a bid to quickly respond to policies introduced by US president-elect Donald Trump after he returns to the White House on Jan. 20.
In November, Hon Hai announced it spent US$33.03 million to acquire a parcel of land and a factory in Texas’ Harris County, which includes Houston, with analysts saying the investment seeks to raise AI production capacity to cater to customers in North America.
Hon Hai chairman Young Liu (劉揚偉) told an investors’ conference in November that the company would pour more funds into the US, setting its sights on AI and electric vehicle (EV) development.
The company has for almost 40 years invested in the US, where it operates 50 facilities and employs almost 5,000 workers, it said, adding that its US operations generate US$25.6 billion in sales per year.
Hon Hai shares soared 76.08 percent last year, closing at NT$184 yesterday, as investors were bullish on its AI server and EV initiatives.
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