News
Hon Hai and Sharp plan domestic AI server production in Japan with Nvidia chips and Rapidus involvement
Friday, December 26, 2025 at 05:26 AM
Hon Hai (Foxconn) is reportedly working with Japan's Ministry of Economy, Trade and Industry to secure Nvidia chips for domestic AI server production. The plan involves utilizing Sharp's facilities and potentially collaborating with Rapidus, supported by government subsidies.
Context
Hon Hai Precision Industry (Foxconn) is seeking subsidies from Japan’s Ministry of Economy, Trade and Industry (METI) to transform Sharp’s Kameyama plant into a dedicated hub for AI server production. The proposal submitted to the Japanese government focuses on securing a stable domestic supply of NVIDIA chips to build out high-performance computing infrastructure within Japan. This initiative aligns with Japan’s broader industrial strategy to repatriate advanced technology manufacturing, following recent multi-billion dollar investments in domestic semiconductor logic and memory production.
For investors, this transition represents a strategic pivot for Sharp, a Foxconn subsidiary, shifting away from the volatile display market toward high-growth AI hardware. Foxconn currently controls approximately 40% of the global server market and expects AI-related revenue to reach NT$1 trillion in the near term. By localizing production in Japan, Foxconn strengthens its partnership with NVIDIA while diversifying its geographical footprint to mitigate supply chain risks and leverage Japanese government incentives aimed at the 2025-2030 technology cycle.
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