Taipei: Taiwan-based manufacturing giant Hon Hai Precision Industry Co. (Foxconn) has increased its investment in a subsidiary in the United States, which an industrial source said was aimed at expanding AI server production.

According to Focus Taiwan, in an announcement filed with the Taiwan Stock Exchange, where shares of Hon Hai are traded, the company stated that it has invested another US$295 million in Foxconn Assembly LLC through another subsidiary, Cloud Network Technology Singapore PTE. Ltd. Foxconn Assembly LLC is based in Houston, as per Hon Hai’s annual report.

Although Hon Hai did not disclose the purpose of the investment, the source indicated that the company made this move to expand its AI server production for North American clients. At the Hill and Valley Forum held in Washington last week, Hon Hai Chairman Young Liu mentioned that the group currently employs about 8,000 people in the U.S. The number is expected to exceed 10,000 by the end of 2026, as the company aims to tap into the growing AI market and introduce robots.

With 50 facilities in 18 U.S. states, Hon Hai is positioning the U.S. as its largest AI production base. The company expects to generate approximately US$100 billion in revenue in the country by 2026, according to Liu. While Hon Hai has not officially disclosed the total amount invested in the U.S., analysts estimate that the figure has reached several billion U.S. dollars.

Currently, Hon Hai operates 223 factories across 24 countries, with total annual sales of about US$260 billion. The company accounts for more than 40 percent of the world’s AI server market, as stated by Liu.