Foxconn Leases Texas Plants to Boost AI Server Capacity
Foxconn Technology, through its subsidiary Foxconn Assembly LLC., has leased two plants in Houston, Texas, with a total lease value of approximately $56.55 million. This strategic move is part of Foxconn’s ongoing efforts to expand its AI server capacity in Texas, enhancing its ability to serve North American clients more effectively.
The leased facilities, primarily for operational needs, span a total area of 601,600 square feet. The lease terms for the two plants are 122 months and 124 months, respectively. This expansion follows Foxconn’s announcement in late November 2024 of a $33.033 million investment to acquire land and factory facilities in Harris County, Texas.
During its mid-May investor conference, Foxconn revealed that its capital expenditure for the year is expected to surge by over 20%. A significant portion, between 60% to 70%, of this spending will be allocated to capacity expansion across various regions, including India, Vietnam, the U.S., and Mexico.
This development coincides with NVIDIA’s announcement in mid-April to build a supercomputer facility in Texas. In collaboration with Foxconn and Wistron, NVIDIA plans to establish supercomputer factories in both Houston and Dallas, with mass production expected to commence within the next 12 to 15 months. The partnership underscores the growing importance of Texas in the AI and semiconductor industry.
The expansion of Foxconn’s operations in Texas is a significant step in the company’s strategy to enhance its AI server capacity and better serve its North American clientele. As the demand for AI servers continues to grow, Foxconn’s move is poised to strengthen its position in the market.
