Electronics manufacturer Hon Hai (4938) announced after its shareholders' meeting that its US factory establishment plan is in the final assessment stage, with Texas chosen as the preferred location. With a surge in demand for AI servers and the expansion of the electric vehicle market, Hon Hai is initiating a new wave of global capacity restructuring strategies, aiming to reduce tariff and shipping cost pressures while laying a medium to long-term layout for North American clients.

The evaluation for the new US factory site focuses on vital factors such as power availability, land and labor costs, automation feasibility, and government incentives. Notably, AI server products have high requirements for power stability and engineer density, giving Texas a competitive edge. The site selection is currently in its final evaluation phase, with plans to present it to the board for approval in the coming month or next.

Additionally, Hon Hai has initiated the establishment of a production base in Mexico, expecting to start mass production in Q3. The company has also been expanding its automated production lines to meet customer demands. In the electric vehicle sector, Hon Hai is actively deepening partnerships with major American manufacturers, with additional collaborations with other electric vehicle brands set to commence by the end of this year and into next year.