AIBRIEF
Foxconn parent Hon Hai's H1 2026 spend is already up NT$3.7B (New Taiwan dollars, roughly USD 127M) year on year as it prepares to mass produce next generation AI racks in Q3 2026 and expand US campuses in Texas, Wisconsin, Ohio, and California.
Foxconn's parent, Hon Hai Precision Industry, will grow its 2026 capital expenditure by more than 30% to fund next-generation AI rack mass production, rotating CEO Michael Chiang said at an August 12, 2026 investor conference. The company plans to lift its global AI server market share from over 40% to 50%, with the new racks becoming its core AI product by 2027.
Hon Hai's 2025 capex reached NT$173.8 billion (USD 5.39 billion), up NT$37.4 billion (USD 1.28 billion) year-on-year, CFO David Huang said. H1 2026 capex already hit NT$80.9 billion (USD 2.77 billion), a NT$3.7 billion (USD 126.8 million) increase from a year earlier. Huang said Hon Hai can generate large cash and secure sufficient external financing to meet demand.
The next-generation AI racks enter mass production in Q3 2026, with shipments beginning Q4 2026. Q3 2026 AI rack shipments are projected to grow at a double-digit pace, with full-year 2026 shipments expected to more than double 2025 levels.
In the US, Hon Hai will expand R&D and production at campuses in Texas, Wisconsin, Ohio, and California to meet American client requirements. Capex will also strengthen manufacturing and automation in Taiwan, Mexico, and Vietnam. The Q1 2026 net profit reached NT$49.92 billion (USD 1.58 billion), up 19% year-on-year, with its cloud and networking division accounting for 48% of total sales.
The 30%+ growth target and 50% share ambition are management guidance, not booked spend. Both hinge on AI demand holding and the Q3 2026 rack ramp landing on schedule.