[News] Foxconn Leased Texas Plants to Expand AI Server Capacity

Foxconn Technology (Hon Hai) recently announced that its subsidiary, Foxconn Assembly LLC., has successfully leased two plants in Houston, Texas, with a total lease value of approximately USD 56.5538 million. This move is seen by the market as part of Foxconn’s continued efforts to expand its AI server capacity in Texas, by which it can better serve its North American clients.

According to Foxconn’s announcement, the two plants, primarily for operational needs, cover a total area of 601,600 square feet, with lease terms of 122 months and 124 months, respectively. In addition, Foxconn announced an investment of USD 33.033 million to acquire land and factory facilities in Harris County, Texas in late November 2024.

During its mid-May investor conference, Foxconn stated that its capital expenditure for this year is expected to increase by more than 20%, with 60% to 70% of the spending allocated to capacity expansion across multiple regions, including India, Vietnam, the U.S., and Mexico.

It’s also worth noting that AI chip giant NVIDIA announced in mid-April that it is building a supercomputer facility in Texas. In collaboration with Foxconn and Wistron, it plans to establish supercomputer factories in both Houston and Dallas, with mass production expected to begin within the next 12 to 15 months.

(Photo credit: Foxconn)