Taiwanese electronics giant Foxconn announced Wednesday that it has received regulatory approval to invest an additional $569 million in its Wisconsin operations. The move comes as the company seeks to expand production to meet growing demand for artificial intelligence servers in the United States.
The Wisconsin Economic Development Corporation (WEDC) has approved Foxconn’s proposal to expand its Racine County facility, the company said in a statement. Foxconn, recognized as the world’s largest contract electronics manufacturer, plans to use the expansion to ramp up production in response to surging demand for AI servers.
Sam Rikkers, deputy secretary and chief operating officer of WEDC, told, as quoted by International Business Times UK, “WEDC has been committed to ensuring Foxconn’s success and growth in our state. This new amendment reflects Foxconn’s status as one of the many leading global manufacturers that have chosen to grow in Wisconsin.”
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The new investment will center on Foxconn’s AI server operations, a move the company says will help bolster U.S. domestic supply chains and reduce reliance on overseas production.
“As the demand for more data infrastructure continues to rise, Foxconn will keep responding to our customers’ needs with flexibility and at scale in the United States,” as per Foxconn’s chief product officer, Jerry Hsiao.
Hsiao noted that Wisconsin currently employs nearly a quarter of Foxconn’s U.S. workforce. The planned expansion is expected to double the company’s footprint in the state by 2030, generating approximately 1,374 new jobs. He highlighted that Foxconn’s Wisconsin operations represent nearly a quarter of its U.S. workforce, and said the new AI-focused investment is expected to more than double the company’s presence in the state over the next four to five years.
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The WEDC noted that Foxconn had invested more than $700 million in its Mount Pleasant operations and created over 1,200 jobs by the end of 2024. However, that fell far short of the 13,000 positions the company had originally pledged.
As a result, the state reduced Foxconn’s contract from $4 billion to $80 million after it became clear the company would not meet its initial hiring targets. Foxconn had initially planned to invest $10 billion at the Wisconsin site to produce large flat-panel displays, but much of the property is now being developed by Microsoft as a data center.
Foxconn, officially Hon Hai Technology Group, said it has invested over $2 billion in Wisconsin in recent years, covering payroll, capital expenditures, and taxes.