Taiwanese electronics giant Foxconn is recalibrating its U.S. operations, steering away from EV production and setting its sights on the booming AI infrastructure market. The company has sold its EV factory in Lordstown, Ohio, which it acquired in 2022 from Lordstown Motors, in favor of ramping up AI server production on the same site.
In a recent regulatory filing, Foxconn confirmed the sale of its Ohio facility, but made it clear that operations on-site would continue just with a new focus. According to Nikkei, the company sees the North American EV market as underwhelming, with demand failing to keep up with existing production capacity. By contrast, the surging demand for AI technology presents a far more lucrative path. The Wall Street Journal also corroborated Foxconn’s pivot toward AI server manufacturing in the U.S.
This transition comes on the heels of a strategic alliance Foxconn forged on July 30 with fellow Taiwanese firm TECO Electric & Machinery. The partnership aims to jointly pursue opportunities in the global AI datacenter market. TECO specializes in energy infrastructure critical to running datacenters, while Foxconn, a known jack-of-all-trades manufacturer, often builds servers and other hardware tailored to customer needs.
The move underscores Foxconn’s broader ambition to become a major U.S.-based AI hardware provider, serving clients like Apple and other domestic tech companies. The decision to repurpose the Lordstown facility aligns with these plans and strengthens its AI foothold.
Still, questions remain about Foxconn’s earlier commitment to developing a reference platform for electric vehicles, which was intended to attract automakers. With the recent shift, the fate of that initiative appears uncertain. And it’s not the first time Foxconn has scaled back grand plans notably, the company once promised a large-scale LCD display factory in Wisconsin that never fully materialized. In hindsight, perhaps that retreat was prescient, given the declining demand for LCDs.
Foxconn’s new strategy also seems to echo the policies of the Trump administration, which encouraged foreign companies to bring manufacturing to the U.S. while phasing out tax incentives for EV purchases. The administration’s laissez-faire AI policy further incentivizes datacenter expansion.
Meanwhile, in a related development, Tesla’s board of directors awarded Elon Musk an interim bonus of 96 million shares, valued at approximately $29 billion. The move was justified in a shareholder letter stating, “Retaining Elon is more important than ever before” as the company expands from EVs and renewable energy into AI, robotics, and related services.
With that pivot, perhaps Tesla might also become a customer for Foxconn’s AI servers or even collaborate on robotics manufacturing.
