Hon Hai Precision Industry Co., known globally as Foxconn, announced that it expects its capital expenditure to grow by more than 30 per cent in 2026. This increase is attributed to the sustained and robust demand for artificial intelligence and cloud-based infrastructure. The planned expenditure aims to strengthen the company's international manufacturing footprint and technical capabilities. Hon Hai CEO Michael Chiang explained that the spending will boost investment in regional production, introduce automation, and enhance core manufacturing capacity. The announcement followed the release of the company's first-quarter financial results, which showed a record-breaking net profit. Foxconn posted a first-quarter net profit of NT$49.92 billion (USD 1.58 billion), representing a 19 per cent increase from the previous year. The company's total sales for the quarter reached NT$2.12 trillion (USD 67.4 billion), with its cloud and networking division accounting for 48 per cent of that revenue. Hon Hai currently holds approximately 40 per cent of the global AI server market. AI servers represented more than 50 per cent of the company's total server revenue during the first three months of the year. Shipments for general servers remained on track to grow at a double-digit pace, exceeding the broader industry average.