Taipei [Taiwan], August 13 (ANI): Taiwan-based Hon Hai Precision Industry Co. introduced that its capital expenditure for 2026 will concentrate on increasing synthetic intelligence manufacturing, whereas allocating funds to strengthen world analysis and improvement in addition to manufacturing operations, notably within the United States, based on a news report by Focus Taiwan.
Speaking at an investor convention, Hon Hai’s rotating chief govt officer Michael Chiang reiterated the corporate’s capital expenditure development goal of over 30 per cent for 2026, saying it’s going to proceed to increase manufacturing capability of crucial AI units similar to AI servers, AI racks and liquid cooling gear.
In 2025, the corporate’s capital expenditure stood at NT$173.8 billion (USD 5.39 billion), reflecting a NT$37.4 billion (USD 1.28 billion) improve from the earlier yr, based on Hon Hai chief monetary officer David Huang.
Capex for the primary half of this yr reached NT$80.9 billion (USD 2.77 billion), representing a NT$3.7 billion (USD 126.8 million) improve year-on-year, Huang stated, including Hon Hai is able to creating massive money and securing enough exterior financing to satisfy fund demand.
Chiang famous that next-generation AI racks will enter mass manufacturing within the third quarter, with shipments slated to start within the fourth quarter. These new AI racks are anticipated to develop into the core AI product for the corporate, globally referred to as Foxconn, by 2027.
Chiang additional stated that the capex can even be used to strengthen its world manufacturing and automation in areas similar to Taiwan, the US, Mexico and Vietnam.
He singled out the U.S. market, saying Hon Hai will proceed to increase its R&D and manufacturing functionality in its manufacturing campuses situated in Texas, Wisconsin, Ohio and California to satisfy necessities from American shoppers.
The rotating chief govt officer defined that the rise in capex was paving the way in which to a big improve in gross sales, earnings, and money flows sooner or later for the agency. Shipments of AI racks are projected to develop at a double-digit tempo within the third quarter, whereas full-year shipments for 2026 are anticipated to greater than double in comparison with 2025.
Hon Hai at present holds an over 40 per cent share of the worldwide AI server market, with plans to lift that determine to 50 per cent. The agency expects its cloud and networking division to get pleasure from sturdy development on account of AI purposes, whereas its good shopper electronics division can be more likely to develop sharply because it enters a standard peak season.
As per the news report, within the semiconductor sector, the utilization price of Hon Hai’s eight-inch fabrication facility in Japan topped 90 per cent, specializing in key applied sciences similar to silicon carbide, automotive microcontrollers, and AI energy chips.
Meanwhile, in its electrical car enterprise, deliveries of automobiles primarily based on the Model B platform to New Zealand and Austria are scheduled for the top of this yr, following the beginning of deliveries for the Cavira SUV sequence in Taiwan in July. (ANI)