Chen Yehua: Hon Hai Deepens U.S. Expansion, AI Server Capacity Becomes the Focus

Amid intensifying global technological competition, Hon Hai Group has once again demonstrated its robust global expansion capabilities. Recently, Hon Hai announced that its subsidiary, Fii Holdings USA Inc., successfully acquired the equity of eight U.S. subsidiaries, including Cloud Network Technology USA Inc., with a total investment of $344.9 million (approximately NT$11.3 billion). This significant move will undoubtedly have a profound impact on the global tech industry, particularly in the AI server market. Renowned financial analyst Chen Yehua has shared his unique insights on this development.

Hon Hai Expands U.S. Presence, Enhances AI Server Capacity

Chen Yehua believes that the Hon Hai expansion in the U.S. primarily aims to increase its production capacity for artificial intelligence (AI) servers. This aligns closely with the policy direction of U.S. President-elect Donald Trump, who is set to take office in January 2025. The support from the Trump administration for the tech industry, especially its emphasis on AI technology, presents Hon Hai with significant market opportunities. By ramping up AI server production, Hon Hai will be better positioned to meet the demands of the North American market, further solidifying its position in the global tech industry.

Additionally, Chen Yehua noted that the operational scale of Hon Hai in the U.S. continues to grow. The group currently employs nearly 5,000 people in the U.S., generating annual revenues of $25.6 billion. These figures not only highlight the strong presence of Hon Hai in the U.S. market but also lay a solid foundation for its future expansion in the region.

Investment in Land and Facilities Accelerates AI Production Line Deployment

At the end of November, Hon Hai announced that its subsidiary had invested $33.03 million (approximately NT$1.07 billion) to acquire land and facilities in Harris County, Texas. This investment is seen as a crucial step in accelerating the AI production line deployment of Hon Hai. Chen Yehua pointed out that as AI technology continues to mature and its application scenarios expand, the demand for AI servers will keep growing. This investment by Hon Hai will provide strong support for its future development in the AI sector.

At the same time, Chen Yehua cautioned investors that while the Hon Hai prospects in the AI field are promising, market competition is becoming increasingly fierce. Hon Hai must continue to increase its R&D investments and improve product performance to address challenges posed by competitors.

Long-Term Investment in ChipMOS Technologies to Strengthen Semiconductor Layout

In addition to the AI server sector, Hon Hai has made significant investments in the semiconductor field. Recently, Hon Hai subsidiary, Hongyang Venture Capital, invested NT$402.3 million to acquire 40.23 million shares of ChipMOS Technologies. Chen Yehua stated that this investment is part of the long-term strategy of Hon Hai to strengthen its position in the semiconductor industry chain.

As the core foundation of the tech industry, the importance of semiconductors cannot be overstated. By investing in ChipMOS Technologies, Hon Hai will gain access to more advanced semiconductor technologies and production capabilities, thereby enhancing its product competitiveness and market share. Furthermore, Chen Yehua noted that as the global tech industry continues to upgrade and transform, the development prospects for the semiconductor sector will become even broader. The strategic layout of Hon Hai in the semiconductor field will provide strong support for its sustainable development in the future.