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Foxconn's US$500M Kaohsiung bet on EVs and software

Ninelu Tu, Taipei; Sherri Wang, DIGITIMES Asia 0

Credit: DIGITIMES

Foxconn plans to invest NT$15.9 billion (approx. US$510 million) to build a flagship headquarters in southern Taiwan, deepening its footprint in Kaohsiung as the contract electronics manufacturer accelerates its expansion into electric vehicles, artificial intelligence, and software-driven services.

Foxconn said it has signed a joint development agreement with the Kaohsiung city government for a site linked to the Kaohsiung Metro Y15 station. Construction is expected to begin in 2027, with completion targeted for 2033. The project will serve as Foxconn's southern Taiwan flagship hub, housing five core teams spanning software development, battery technology, electric vehicles, and AI computing.

Anchoring Foxconn's southern Taiwan strategy

The project will lift Foxconn's cumulative investment in Kaohsiung to more than NT$25 billion and build on earlier commitments, including a 2024 announcement with Nvidia to establish an advanced computing center in the city. Foxconn said the expansion will act as a proving ground for its three smart platforms strategy, extending the group's focus from manufacturing into smart cities, smart electric vehicles, and software services that can be deployed overseas.

Kathy Yang, Foxconn's rotating CEO, said the investment reflects a long-term commitment to Kaohsiung rather than a stand-alone real estate development. She said Foxconn's execution capabilities, combined with the city government's administrative efficiency, could help shape the region's next phase of industrial growth.

Kaohsiung Mayor Chen Chi-mai said Foxconn's continued investment would support industrial upgrades in the Asia New Bay Area and create nearly 2,000 jobs. He said the combination of software development and advanced technologies would also enhance public spaces and urban services.

From manufacturing base to integrated ecosystem

Foxconn has maintained operations in Kaohsiung for years, beginning with a base in the Kaohsiung Software Park focused on internal information systems and factory automation. Affiliates such as Cloud High Technology have since expanded cloud services and data analytics capabilities to support AI-related growth.

In the second half of 2025, Foxconn's global battery center at the Hefa Industrial Park entered mass production, becoming a key local manufacturing hub for electric vehicles and energy storage systems. An electric bus factory at the Ciaotou Science Park is nearing completion, while passenger vehicle production lines are also under development, according to people familiar with the plans.

Together with the Y15 project, these facilities form a connected network spanning batteries, vehicle assembly, software development, and headquarters operations, shifting Foxconn's Kaohsiung presence from isolated sites to an integrated ecosystem.

Software and smart city focus

Software and AI research underpin Foxconn's broader strategy. The company has expanded its software and cloud footprint in Kaohsiung, including the launch in 2024 of a software research and development center at Warehouse No. 7 in the Pier-2 Art Center. The center focuses on smart city platforms, connected vehicle services, and AI applications, using port and urban environments to test use cases such as traffic data, public services, and tourism.

Foxconn and the Kaohsiung city government have also advanced smart city initiatives built around CityGPT, an AI and big data platform that integrates public transportation, urban sensors, and existing information systems. Foxconn plans to use Kaohsiung as a reference case and export the model overseas.

Under current plans, the Y15 headquarters will consolidate smart city and software teams, allowing CityGPT and related urban data platforms to be developed, tested, and showcased from a single base.

Long-term bet on computing and talent

Foxconn chairman Young Liu has previously highlighted plans for an advanced AI computing center. Yang said the project remains under planning but is expected to provide foundational infrastructure for the company's smart platforms, supporting applications ranging from manufacturing scheduling and electric vehicle fleet management to digital twin simulations and urban analytics.

While details on scale and product mix have not been disclosed, industry observers expect rising demand for computing power to attract more cloud and AI ecosystem players to Kaohsiung.

Foxconn said the Y15 headquarters will centralize teams currently spread across multiple locations, including smart city units, software research, battery and energy storage development, EV technologies, and AI applications. Existing sites such as the Pier-2 center and the software park will be retained as front-end testing and co-creation spaces.

The company also emphasized sustainability, saying the project aligns with its environmental, social, and governance goals. Foxconn said the Y15 project is not intended to generate short-term real estate returns, but to strengthen its technology and talent base while working with the city government to drive industrial transformation and sustainable local development.

Article edited by Jack Wu