Foxconn to Invest $510 Million in New AI-Focused Headquarters in Southern Taiwan

TLDRs;

• Foxconn plans a $510 million headquarters in Kaohsiung, reinforcing its long-term commitment to southern Taiwan’s tech ecosystem.
• The new complex will focus heavily on AI, cloud, and software, with EV development playing a more uncertain role.
• AI servers and networking now outpace consumer electronics, shaping Foxconn’s near-term growth strategy.
• Taiwan’s generous incentives and tax benefits continue attracting large-scale investments in AI and advanced manufacturing.

Foxconn, the world’s largest contract electronics manufacturer, has unveiled plans to invest T$15.9 billion (approximately $510 million) in a new headquarters complex in Kaohsiung, marking one of its most significant recent commitments to southern Taiwan.

The project underscores Foxconn’s strategic pivot toward artificial intelligence, cloud infrastructure, and advanced software development, even as its electric vehicle ambitions face a slower and more uncertain path to commercialization.

According to company disclosures, construction of the new headquarters is expected to begin in 2027, with completion targeted for 2033. The development will be more than a conventional corporate office, combining commercial and office facilities with a residential tower.

A Southern Taiwan Anchor

Foxconn says the Kaohsiung headquarters will anchor its southern Taiwan operations, housing teams focused on smart-city solutions, software development, battery-cell research, electric vehicle technology, and artificial intelligence applications.

The location aligns with the company’s broader strategy to diversify beyond traditional consumer electronics manufacturing and move deeper into higher-margin, technology-driven businesses.

The Kaohsiung city government welcomed the announcement, noting that Foxconn’s cumulative investment in the city has reached roughly T$25 billion (about $802 million) over the past three years. Local officials see the project as a catalyst for regional economic development, particularly in attracting high-skilled jobs linked to AI, semiconductors, and next-generation manufacturing.

AI Takes Center Stage

While Foxconn has branded the Kaohsiung site as both an EV and AI hub, recent business signals suggest artificial intelligence may be the more immediate priority. Cloud and networking products, including AI servers, have surpassed consumer electronics as Foxconn’s top revenue drivers for two consecutive quarters.

The company has publicly stated that it expects its share of the global AI server market to exceed 40% by 2026, highlighting where management sees near-term growth.

In contrast, Foxconn’s electric vehicle roadmap appears less defined. The company previously targeted a 5% share of the global EV market by 2025 but has since pushed back that goal amid cooling demand and increased competition. Chairman Young Liu has also warned of an impending shakeout among loss-making EV startups in China, signaling a more cautious investment stance in the sector.

EV Ambitions Under Scrutiny

Foxconn’s Mobility in Harmony (MIH) platform, an open EV design and supply chain initiative, remains a central pillar of its long-term vision. However, the company has not disclosed concrete revenue targets, adoption rates, or timelines tied to MIH-related vehicles.

This lack of transparency has led some analysts to view the Kaohsiung headquarters less as an EV manufacturing launchpad and more as a combined real estate, software, and AI research investment.

Without a clear EV-to-revenue bridge, the scale and structure of the new headquarters raise questions about how quickly Foxconn expects its automotive efforts to materially contribute to earnings. For now, AI infrastructure and enterprise technology appear to offer a clearer and faster return profile.

Taiwan’s Investment Tailwinds

Foxconn’s decision also reflects Taiwan’s increasingly aggressive push to attract investment in AI and advanced manufacturing. For 2025, the Taiwanese government approved incentive programs that include up to NT$720 billion in loans over three years, alongside higher subsidies for loan service fees.

Foreign direct investment reached $7.8 billion in the first seven months of 2025, supported by streamlined approval processes and tax incentives such as R&D credits of up to 15%.

Companies investing in smart machinery, 5G infrastructure, or regional headquarters may also qualify for accelerated depreciation and preferential tax treatment.

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