Taipei: Taiwan-based manufacturing giant Hon Hai Precision Industry Co., known as Foxconn, has announced an additional investment of US$168 million in Mexico, likely to enhance its production of AI servers. The investment was made through the company's subsidiary, Cloud Network Technology Singapore, into FII AMC Mexico, which is owned by another Foxconn subsidiary, Foxconn Industrial Internet Co. (FII).

According to Focus Taiwan, this marks the second financial boost Foxconn has made towards its Mexican operations in August, following a US$45 million injection on August 13. Foxconn's control over a significant AI server production site in Mexico underscores its commitment to expanding its technological manufacturing capabilities in the region.

Beyond Mexico, Foxconn is strategically expanding its footprint in the United States, leasing two factories in Houston with a combined floor area of 601,600 square meters. This expansion aligns with the company's broader efforts to diversify its product portfolio, highlighted by its recent partnership with U.S.-based AI chip designer Nvidia Corp. to establish an advanced AI factory supercomputing center in Taiwan.

At a recent investor conference, Foxconn emphasized its ambitious targets, projecting AI server revenue to reach NT$1 trillion (approximately US$32.82 billion) by 2025, which would represent more than a 50 percent increase from the previous year. The company anticipates continued sales growth momentum into 2026 and beyond.

Foxconn's global expansion strategy, which includes extending its manufacturing bases to regions such as Vietnam, India, and Europe, reflects the company's resilience and adaptability in the face of tariff and foreign exchange challenges. Chairman Young Liu expressed confidence in the company's future, supported by its extensive network of 223 plants and offices across 24 countries, including 54 locations in the Americas, 12 in Europe, and 12 in India.