According to a report from Economic Daily News, on the evening of August 21st, Foxconn announced plans to expand its investments, increasing capital in its subsidiaries located in the U.S., Mexico, India, and Europe. The total investment amounts to roughly USD 840 million.

First, Foxconn announced earlier that its subsidiary, Cloud Network Technology USA Inc., has acquired shares of Foxconn Assembly LLC. The transaction is valued at USD 253 million.

Sources cited by the Economic Daily News suggests that this move is looking to boost the production capacity of its plant in Houston, Texas. Foxconn currently manufactures AI servers in three locations across North America: Mexico, Wisconsin, and Texas. This indicates that Texas is gradually becoming a key hub for AI server production.

Secondly, Foxconn announced that its subsidiary, Cloud Network Technology Singapore Pte. Ltd., has acquired shares of FII AMC MEXICO S. DE R.L. DE C.V. The transaction is valued at USD 241 million.

It is speculated by the Economic Daily News that this move is primarily aimed at increasing the production capacity of Foxconn’s subsidiary, FII (Foxconn Industrial Internet), in its Mexico plant.

FII previously stated that the initial production of the GB200 servers would start in Taiwan, with the related capacity already in place.

The first overseas production line for the GB200 servers is reportedly to be set up at the Mexico plant, which is already producing AI servers, with small-scale production of the GB200 expected to begin as early as the third quarter.

Thirdly, Foxconn announced that its subsidiary, Foxconn Interconnect Technology Limited, has acquired 197 million ordinary shares of Foxconn Interconnect Technology Singapore Pte. Ltd., valued at approximately EUR 180 million (roughly USD 200.53 million).

Per Economic Daily News, it is speculated that this move is related to Foxconn’s subsidiary, FIT (Foxconn Interconnect Technology), which previously announced the acquisition of shares in the German Auto-Kabel Group to strengthen its presence in the automotive electrification sector and expand its customer base.

Lastly, Foxconn announced that its subsidiary, Foxconn Singapore Pte Ltd, has acquired 1.203 billion ordinary shares of Foxconn Hon Hai Technology India Mega Development Private Limited, valued at approximately USD 144 million .

Reportedly, it is speculated that this investment aims to boost the capital of Foxconn’s Indian subsidiary.

As Foxconn is preparing for mass production of the iPhone 16 Pro and Pro Max in India, this year marks the first time Apple is integrating AI applications (Apple Intelligence) into the latest iPhone 16 Pro series.

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(Photo credit: Foxconn)

As American tech giants depart from China and relocate their production of artificial intelligence (AI) server to Mexico, according to a report from UDN, some major AI players have urged their Taiwanese manufacturing partners to enhance their investments in production in Mexico.

Reportedly, Taiwanese manufacturing giants like Foxconn and Inventec are increasingly attentive to this trend, ramping up their investments in Mexico and leveraging the advantages provided by the US-Mexico-Canada Agreement (USMCA) that came into effect in 2020.

As per a report by The Wall Street Journal, the USMCA has already attracted billions of dollars in investment in the manufacturing sector, aimed at shifting production operations from China to Mexico.

James C. F. Huang, from the Taiwan External Trade Development Council, stated that the three North American countries aim to minimize imports from Asia as much as possible. Based on this consensus, Mexico is expected to become the most significant production base within the USMCA for the production of goods.

In February, Foxconn, the world’s largest electronics manufacturing services provider, announced a USD 27 million investment in purchasing land in the western state of Jalisco, Mexico. According to the report citing sources, this move is aimed at significantly expanding the company’s production of AI servers. Foxconn stated that it has invested approximately USD 690 million in Mexico over the past four years.

Sources cited by UDN also revealed that Foxconn’s Mexican facility manufactures AI servers for American tech giants such as Amazon, Google, Microsoft, and NVIDIA. However, the US companies have declined to confirm this claim.

Last year, the chairman of Mexico’s largest private organization, Francisco Cervantes, pointed out that increased investment by Taiwanese businesses in Mexico will significantly reshape the country’s industrial structure over the next decade.

The production volume of AI server is on the rise, and American companies are hoping to avoid repeating the history of smartphones. Many core components and parts of smartphones ended up being produced in China, particularly in factories operated by companies like Foxconn, for the assembly of iPhones.

Foxconn’s Chairman Young Liu previously indicated a strong demand for AI servers, with Foxconn securing new projects continuously.

Foxconn spokesperson James Wu noted that Foxconn Group commands over 40% market share in the server industry, particularly in the mid-to-high-end products related to AI servers. Foxconn closely collaborates with customers and aims to maintain its dominance, anticipating substantial contributions once the entire supply chain stabilizes.

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(Photo credit: Foxconn)