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Foxconn invests $296 million to expand AI server production in Houston, Texas

Tuesday, March 31, 2026 at 01:11 AM

Foxconn is investing NT$9.4 billion ($296 million USD) to increase capacity for AI server manufacturing at its facility in Houston, Texas. This expansion supports the company's projection of reaching $100 billion in annual revenue from its US operations across 18 states, driven by high demand for AI infrastructure from major hyperscalers.

Context

Foxconn (Hon Hai Precision Industry Co.) is significantly expanding its U.S. manufacturing presence with a $296 million investment to scale AI server production at its Houston, Texas facility. This move follows a series of strategic acquisitions in the region, including a 1-million-square-foot building and an 86-acre lot. The expansion is designed to meet surging demand from major North American Cloud Service Providers (CSPs) such as Microsoft, Meta, Amazon, and Google, while deepening a critical production partnership with Nvidia. By March 2026, the Houston plant is transitioning from a construction site to a high-tech production node, integrating Nvidia Isaac humanoid robots and Omniverse digital twins to optimize assembly lines. Foxconn expects its AI server revenue to exceed $30 billion this year, with total U.S. operations across 18 states projected to generate $100 billion in revenue. This domestic capacity pivot allows the company to mitigate geopolitical and tariff risks while providing the high-density power and liquid-cooling solutions required for Nvidia's next-generation Blackwell architecture.

Sources (10)

Hon Hai Technology Group (Foxconn) Announces FY2024 & 4Q24 Financial Results - Hon Hai Technology Group Hon Hai invests US$142 million in Texas to expand AI server capacity - Taipei Times Foxconn's investor briefing could signal major shifts in AI server supply, capacity and data center infrastructure Foxconn Expects AI Demand to Remain Strong, Sees ...Foxconn Assembly secures Houston property for $33 million [PDF] contents [PDF] WT Microelectronics Co., Ltd. 2019 Annual Report Foxconn to Deploy Humanoid Robots on Production Line at Houston AI Server Plant | ASSEMBLY

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