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Taiwan Foxconn, iPhone Contract Manufacturer, to Establish Factory in Houston, USA

Foxconn (Hon Hai Precision Industry), Apple's largest partner, announced on the 25th (local time) through Taiwan's Central News Agency and TechNews that it will build a factory in Houston, Texas, USA.


Taiwan Foxconn, iPhone Contract Manufacturer, to Establish Factory in Houston, USA EPA Yonhap News

According to reports, Ingrasys, a subsidiary of Foxconn, the world's largest electronics contract manufacturer, has invested $142 million (approximately 208.6 billion KRW) to expand production in the United States. With this investment, Ingrasys acquired 349,000 square meters (㎡) of land and a factory measuring 93,000 square meters (㎡) in Houston, USA.


An official explained that this move is related to last month’s announcement by Apple that, together with Foxconn, it would establish an artificial intelligence (AI) server assembly plant in Houston to supply a data center running the AI platform 'Apple Intelligence.'


Another official stated that Ingrasys’s recent move cannot be directly linked to Apple’s local project, interpreting it as an effort to expand AI server production facilities. They added that there is a possibility of supplying to North American AI server clients other than Apple.


Earlier, Foxconn Chairman Liu Yangwei stated on the 15th that "AI server sales in the first quarter are expected to double compared to the previous quarter and the same period last year." At that time, he explained that he expects AI server sales this year to exceed 1 trillion Taiwan dollars (approximately 44 trillion KRW).


Foxconn is constructing the world's largest server manufacturing facility equipped with Nvidia's GB200 superchip in Mexico. Meanwhile, Ingrasys also invested $128 million in January to purchase land and a factory in Sunnyvale, California, USA. Additionally, on the 11th, Ingrasys announced a capital increase of approximately $17.961 million to its Vietnamese subsidiary to expand AI server production capacity.


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