Hon Hai Precision Industry Co., widely known as Foxconn, has announced the sale of its electric vehicle (EV) plant in Ohio for $375 million, as part of a strategic shift towards manufacturing AI servers in the United States.
According to exchange filings, the facility—including the land and equipment—will be sold to Crescent Dune LLC. Despite the sale, Hon Hai will continue to operate at the same location, although the company did not specify the exact arrangement. A person familiar with the matter shared that the Taiwanese company intends to use the site for its AI server production business, but requested anonymity as the information is not yet public.
Hon Hai originally acquired the Ohio facility in 2022 from the struggling Lordstown Motors Corp., aiming to boost its EV ambitions. However, the EV project faced setbacks. With that initiative stalling, the company is now turning its focus to areas that are seeing stronger momentum, particularly AI infrastructure.
As one of the primary server manufacturers for Nvidia Corp., Hon Hai is benefiting from a surge in investments by major US technology firms in AI systems. The company has already expanded AI server assembly in the country, including for Apple Inc., aligning with broader efforts to promote advanced manufacturing in the US.
Nvidia has revealed plans to produce AI infrastructure worth up to half a trillion dollars over the coming years in the United States through manufacturing partnerships that include Foxconn.
Hon Hai confirmed that the funds from the Ohio plant deal will be reinvested in its US operations. However, no further details were shared, and the company has not responded to requests for comment.
This transition marks a strategic pivot for Hon Hai, as it moves from electric vehicles to the rapidly expanding AI server market, positioning itself to meet growing demand from global tech giants.
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