The giant Taiwanese manufacturing conglomerate, Hon Hai Technology Group, commonly known as Foxconn, is significantly increasing its investments in Vietnam.

According to information from Channelnewsasia, this move is reportedly aimed at expanding production capacity for artificial intelligence (AI) servers, a sector experiencing strong global growth.

Specifically, in a recent statement, Foxconn announced it has injected an additional $23.40 million into Fulian Precision Technology Component, a subsidiary in Vietnam, through its unit Ingrasys (Singapore) Pte. Ltd. This is considered a long-term investment, demonstrating Foxconn's commitment to developing its manufacturing presence in Vietnam.

Previously, Ingrasys – a Foxconn cloud solutions provider – had already invested approximately $17.96 million in Fulian Precision. This company was established in 2023 in the Quang Chau Industrial Park, Viet Yen District, Bac Giang Province. Fulian Precision specializes in manufacturing products such as servers, server racks, and communication equipment. With these successive investments, Foxconn is progressively building a significant manufacturing hub in Vietnam.

In February, Foxconn, through its subsidiary New Wing Interconnect Technology (Bac Giang) Co., Ltd., also acquired a 25% stake in Goertek Electronics Vietnam for $50 million.

Foxconn is currently expanding its AI server production capacity not only in Vietnam but also in other destinations, including Taiwan, the United States, and Mexico. The goal of this strategy is to provide flexibility in adjusting the production of high-end AI servers to meet the fluctuating demands of the global market.