Foxconn Technology Group, a subsidiary of Hon Hai Precision Industry, is poised to revolutionize its manufacturing processes by deploying humanoid robots in Texas for the production of AI servers. This strategic initiative, revealed by Chairman and CEO Young Liu, signifies a pivotal moment in the company's 50-year history, marking the first time such advanced robotics will be integrated into its production lines. The move underscores Foxconn's commitment to enhancing efficiency and productivity in the rapidly evolving high-tech sector, particularly in the realm of artificial intelligence.
Liu articulated the critical need for speed within the AI industry, emphasizing that the introduction of humanoid robots will significantly accelerate AI server manufacturing. North America is slated to become Foxconn's central hub for AI server production over the next three years, aligning with the region's burgeoning growth in AI data centers. This strategic geographic focus also supports the concept of 'sovereign AI,' where governments increasingly demand localized data and training models, making local production a key competitive advantage.
This deployment is an integral component of Foxconn's overarching strategy to bolster its capabilities in AI and supercomputing. The company had previously announced a substantial $1.37 billion investment in AI and supercomputing infrastructure, entirely self-funded, to be allocated between December 2025 and December 2026. This significant capital outlay reflects Foxconn's aggressive pivot towards AI, indicating a long-term vision for leadership in this domain.
The shift towards AI has already yielded tangible results for Foxconn. In the second quarter of 2025, the company's AI server division reported a remarkable 47% year-over-year revenue increase, reaching NT$731.8 billion ($24.32 billion). This impressive growth propelled the AI server division past iPhone assembly as Foxconn's primary revenue driver, surpassing the Smart Consumer Electronics division's NT$634.5 billion ($21.08 billion). Furthermore, AI servers now constitute over half of the company's cloud revenue, with projections indicating a staggering 170% surge in AI server revenue for the third quarter.
Foxconn's strategic embrace of AI extends to product development as well. In March, the company unveiled its proprietary large language model, developed in collaboration with Nvidia technology. This model, boasting advanced reasoning capabilities, exemplifies Foxconn's comprehensive push into both AI and electric vehicles, solidifying its position as a diversified technology leader. This move into humanoid robots further cements its commitment to leveraging cutting-edge technology for future growth.
The integration of humanoid robots into its production ecosystem signifies a major leap forward for Foxconn, allowing it to meet the escalating demands of the AI market with unprecedented efficiency. By prioritizing North America as its primary manufacturing base for AI servers and investing heavily in advanced AI and supercomputing infrastructure, Foxconn is strategically positioning itself at the forefront of technological innovation and manufacturing leadership. The company's proactive approach to adopting advanced robotics and AI solutions is set to redefine its operational landscape and strengthen its market presence in the coming years.