Real Estate Transactions: Hon Hai Liquidates Property, Land, Equipment in Ohio
In a strategic move, Hon Hai Precision Industry Co., also known as Foxconn Technology Group, has sold its Lordstown, Ohio plant to Crescent Dune LLC for $375 million. However, the tech giant will continue to operate the facility under a long-term lease, marking a significant shift in focus from electric vehicle (EV) manufacturing to developing a massive artificial intelligence (AI) server and data center hub [1][2].
The sale of the 6.2 million-square-foot factory, six times larger than Hon Hai's new Houston plant, reflects the high business potential and asset value of the Lordstown facility [1]. The transition comes amidst setbacks in the EV sector, such as the bankruptcy of Lordstown Motors. Foxconn aims to capitalise on the growing demand for AI computing power in the U.S. [1][2].
Plans for the Lordstown site include the construction of AI data centers and servers, integrating this with Hon Hai's existing EV industry foundation. The company is also forging partnerships to expand its AI server market presence, such as with Teco Electric and Machinery Co [1][2][5].
Despite the sale, Hon Hai is not abandoning the EV sector entirely. The company continues to develop EVs, including the North American Model C electric SUV, which might still be produced under contract at Lordstown [2][4].
The sale is part of larger U.S. strategic shifts and opportunities. The facility could potentially be linked to broader AI infrastructure investments, aligning with projects like SoftBank’s Stargate data center initiative [3].
Hon Hai's operations in the U.S. cover four primary product segments: cloud and networking, smart consumer electronics, computing, and components and other products [6]. The company has expressed its intention to share more details about its US strategy in the coming months.
References:
- Reuters
- Bloomberg
- TechCrunch
- The Verge
- Taipei Times
- Hon Hai Precision Industry Co.
- Foxconn Technology Group, having sold its Lordstown, Ohio plant to focus on AI development, plans to construct AI data centers and servers at the site, integrating this with its existing EV industry foundation.
- With the sale of the Lordstown facility, Hon Hai Precision Industry Co. has not abandoned the electric vehicle sector entirely, as it continues to develop EVs, like the North American Model C electric SUV, which might still be produced under contract at the plant.
