Hon Hai Precision Industry Co announced a strategic collaboration with OpenAI to develop next-generation AI infrastructure in the United States. The partnership aims to strengthen local supply chains while accelerating the deployment of advanced AI systems. The AI infrastructure initiative highlights both companies’ focus on innovation and enhancing technological competitiveness.
Under the agreement, OpenAI will share insights into emerging hardware requirements with Hon Hai to guide the design, development, and potential production of AI systems at US facilities. The initial agreement does not involve financial obligations or purchase commitments. The collaboration will prioritize next-generation AI data center racks, improved server rack architecture, and scalable production across multiple American sites.
Hon Hai also plans to broaden procurement by sourcing from local chipmakers and suppliers while expanding testing and assembly lines. These moves are designed to create a more resilient and scalable US supply chain. Additionally, the company intends to produce key components for AI data centers, including networking, cabling, cooling, and power systems domestically. Research and development activities will be based in San Jose, California, with potential manufacturing at Hon Hai’s Ohio plant, according to chairman Young Liu.
The company expects to invest between US$1 billion and US$5 billion to expand its US manufacturing footprint. Production is projected to reach 2,000 server racks per week, effectively doubling current output levels.
Separately, Hon Hai also announced a joint venture with Intrinsic, a subsidiary of Alphabet Inc, to develop AI-enabled robotic factories. This initiative aims to enhance production efficiency across manufacturing and automotive facilities through advanced automation. The project will cover assembly, testing, logistics, and machine maintenance management, using Intrinsic’s general-purpose toolkit and Vision Model technology. The companies expect this partnership to transform electronic assembly processes and achieve full factory orchestration.
In addition, Hon Hai unveiled its new Model A electric vehicle, designed primarily by the company’s Japanese team. The company plans to establish a local production entity in Japan to serve regional customers.
The AI infrastructure expansion underscores Hon Hai’s commitment to supporting US technological leadership while promoting innovation in automation, AI, and electric vehicles. Analysts note that this initiative could position Hon Hai as a major player in the global AI hardware and robotics sectors.
