Foxconn Technology Co (鴻準精密), a metal casing supplier owned by Hon Hai Precision Industry Co (鴻海精密), yesterday announced plans to invest US$1 billion in the US over the next decade as part of its business transformation strategy.
The Apple Inc supplier said in a statement that its board approved the investment on Thursday, as part of a transformation strategy focused on precision mold development, smart manufacturing, robotics and advanced automation.
The strategy would have a strong emphasis on artificial intelligence (AI), the company added.
Photo: Chiang Ying-ying, AP
The company said it aims to build a flexible, intelligent production ecosystem to boost competitiveness and sustainability.
Foxconn Technology said it would integrate its precision hardware expertise with AI software to develop high-precision products, cooling solutions, and applications in robotics, drones and high-end healthcare.
Acting president Pan Yen-jen (潘彥仁) said the investment would strengthen the company’s presence in North America, deepen supply chain cooperation and accelerate digital transformation, adding that the US remains a key base for upgrading technology and driving innovation.
The company also said that its subsidiary Q-Run Holdings Ltd would acquire a 6.6 percent stake in Israel-based robotics developer RoboTemi Global Ltd for US$10 million.
In the first half of this year, Foxconn Technology’s sales soared 218 percent year-on-year to NT$71.22 billion (US$2.39 billion), driven by the launch of Nintendo Co’s Switch 2 console.
However, a stronger New Taiwan dollar eroded earnings, with net profit falling 12.8 percent to NT$1.49 billion, or NT$1.06 per share.
Foreign exchange losses dragged its second-quarter gross margin down 5.94 percentage points from a year earlier to 2.97 percent, while its operating margin fell 2.54 percentage points to 0.95 percent.