Nvidia Partner Hon Hai to Expand AI Server Assembly in the U.S.
Hon Hai Technology Group (Foxconn), Nvidia’s key manufacturing partner, is expanding AI server assembly operations in the United States, strengthening local production amid rising global AI demand and trade uncertainties.
What’s New
Foxconn is building a large-scale facility near Houston, Texas, dedicated to assembling Nvidia’s GB200 and future GB300 AI servers.
Humanoid robots will assist with basic assembly tasks—an industry-first in AI hardware manufacturing.
Hon Hai is repurposing its Lordstown, Ohio facility for AI server production after a $375M sale agreement.
July 2025 sales growth slowed to 1% due to U.S.-China tariff impacts—AI expansion expected to offset this dip.
Key Points:
New Houston Factory: Will span over 3.75M sq. ft., building high-performance AI servers for Nvidia. Construction is underway with automation integration.
Automation Strategy: Foxconn plans to deploy humanoid robots for repetitive tasks, reducing labor costs and increasing speed.
Ohio Facility Shift: Foxconn sold the EV plant but retained rights to operate it, now targeting AI hardware production instead.
Market Leadership: Foxconn aims to dominate global AI server production with a target of 40%+ market share.
Sales Challenges: Tariffs on Chinese components are hurting short-term growth, but AI expansion provides a buffer.
Strategic Shift of Foxconn
Foxconn’s AI revenue is surging and expected to overtake its smartphone and EV sectors.
The new U.S. facilities align with Nvidia’s $500B U.S. AI infrastructure initiative, aiming to localize sensitive production and reduce geopolitical risks.
Foxconn’s expanded presence also addresses national AI policy mandates focused on tech sovereignty and data center localization.
News Gist:
Nvidia’s key partner Hon Hai (Foxconn) will expand AI server assembly in the U.S., focusing on Wisconsin and Ohio.
The move aims to strengthen supply chains, meet U.S. demand, and reduce reliance on China amid tariff concerns.