How Foxconn’s $560 Million Investment Could Shape U.S. AI Server Production
In Focus
- Wisconsin regulatory agency has approved Foxconn’s $569 million investment
- The investment will enable Foxconn to expand operation in its Racine County facility
- Foxconn’s AI investment is expected to create 1374 new jobs in Wisconsin
Taiwanese contract manufacturer Foxconn has secured regulatory approval for a $569 million AI investment in the U.S. state of Wisconsin over the next four years. According to Yahoo Finance, the Foxconn investment approval will enable the contract manufacturer to expand operations in its Racine County facility to meet growing AI server demand.
New Investment to Boost U.S. Supply Chains
Foxconn’s $569 million package is aimed at strengthening supply chains in the U.S.
“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,” Foxconn Chief Product Officer Jerry Hsiao said as reported by Yahoo Finance.
In August 2025, Foxconn reported that its second-quarter operating profit had surged 27% year-on-year. In this quarter, revenue from the company’s AI server business accounted for 41% of the total revenue, surpassing consumer electronics revenue, which stood at 35%. Foxconn expected revenue from its AI server business to continue growing into the third-quarter.
WEDC Incentivizes Foxconn with Tax Credits
The Wisconsin Economic Development Corporation (WEDC) also approved up to $16 million tax credits to support the company’s expansion. However, the development agency says the latest amendments to Foxconn’s contract could push state tax credits to a high of $96 million by the year 2029.
“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,” WEDC Deputy Secretary Sam Rikkers said in a statement as reported by WPR.
In addition to producing AI servers in Wisconsin, Foxconn is partnering with SoftBank to manufacture data center equipment at its former EV factory in Ohio. The initiative is part of the OpenAI-led Stargate project, which is aimed at advancing AI infrastructure in the U.S. SoftBank acquired the Ohio plant from Foxconn at the beginning of August 2025 to enable it to launch data centers for the Stargate project.
Impact of Foxconn’s Subsidy Package on Jobs
WEDC said that Foxconn’s manufacturing investment would increase the production footprint in the Mount Pleasant plant. With this expansion, Foxconn is expected to create 1,374 new jobs for office and factory workers by 2030. Foxconn already makes artificial intelligence servers in the Mount Pleasant plant. Currently, close to 25% of Foxconn’s U.S. workforce is located in Wisconsin.
“Wisconsin accounts for close to a fourth of our workforce in America, and this second-stage project will double that presence in the state by the end of this decade,” Hsiao added.
Foxconn said that in recent years, it has spent over $2 billion on capital expenditure, worker compensation, and taxes in Wisconsin state.
