Hon Hai Precision Industry Co (鴻海) has invested US$142 million in Texas, which industrial sources close to the deal said was aimed at expanding its artificial intelligence (AI) server capacity.
The company has acquired a 34.9 hectare lot in Houston and a 92,903m2 building through its cloud solution subsidiary Ingrasys Technology Inc (鴻佰), Hon Hai said in a filing with the Taiwan Stock Exchange on Monday.
Hon Hai, also known as Foxconn Technology Group (富士康), did not specify the purpose of the investment, saying only that it was for operational needs, the filing showed.
Photo: Bloomberg
However, sources said it would be used to expand AI server production to initially cater to clients in North America, except Apple Inc, which last month said it would partner with Hon Hai to build an AI server assembly plant in Houston by next year.
Hon Hai is expanding AI server capacity in Taiwan, the US, Mexico and Vietnam to give it flexibility in adjusting high-end AI server production based on market conditions.
The company on March 14 told investors that AI server sales this year are expected to be more than NT$1 trillion (US$30.23 billion) and would account for 50 percent of its total server revenue, along with a more than 40 percent share of the global AI server market.
Hon Hai, which has invested in 24 countries and operates 233 facilities, from 2022 to last year spent more than NT$340 billion in capital expenditure to expand production globally, making it resilient amid US tariff threats, Hon Hai chairman Young Liu (劉揚偉) has said.
To many, Tatu City on the outskirts of Nairobi looks like a success. The first city entirely built by a private company to be operational in east Africa, with about 25,000 people living and working there, it accounts for about two-thirds of all foreign investment in Kenya. Its low-tax status has attracted more than 100 businesses including Heineken, coffee brand Dormans, and the biggest call-center and cold-chain transport firms in the region. However, to some local politicians, Tatu City has looked more like a target for extortion. A parade of governors have demanded land worth millions of dollars in exchange
An Indonesian animated movie is smashing regional box office records and could be set for wider success as it prepares to open beyond the Southeast Asian archipelago’s silver screens. Jumbo — a film based on the adventures of main character, Don, a large orphaned Indonesian boy facing bullying at school — last month became the highest-grossing Southeast Asian animated film, raking in more than US$8 million. Released at the end of March to coincide with the Eid holidays after the Islamic fasting month of Ramadan, the movie has hit 8 million ticket sales, the third-highest in Indonesian cinema history, Film
BIG BUCKS: Chairman Wei is expected to receive NT$34.12 million on a proposed NT$5 cash dividend plan, while the National Development Fund would get NT$8.27 billion Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday announced that its board of directors approved US$15.25 billion in capital appropriations for long-term expansion to meet growing demand. The funds are to be used for installing advanced technology and packaging capacity, expanding mature and specialty technology, and constructing fabs with facility systems, TSMC said in a statement. The board also approved a proposal to distribute a NT$5 cash dividend per share, based on first-quarter earnings per share of NT$13.94, it said. That surpasses the NT$4.50 dividend for the fourth quarter of last year. TSMC has said that while it is eager
‘IMMENSE SWAY’: The top 50 companies, based on market cap, shape everything from technology to consumer trends, advisory firm Visual Capitalist said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) was ranked the 10th-most valuable company globally this year, market information advisory firm Visual Capitalist said. TSMC sat on a market cap of about US$915 billion as of Monday last week, making it the 10th-most valuable company in the world and No. 1 in Asia, the publisher said in its “50 Most Valuable Companies in the World” list. Visual Capitalist described TSMC as the world’s largest dedicated semiconductor foundry operator that rolls out chips for major tech names such as US consumer electronics brand Apple Inc, and artificial intelligence (AI) chip designers Nvidia Corp and Advanced
RSS