Hon Hai Precision Industry (Foxconn) announced on August 4, 2025, that its subsidiaries will dispose of assets at the Lordstown, Ohio facility, as part of a strategic shift in its US operations. The disposal, involving land, factory buildings, and machinery through subsidiaries Foxconn EV Property Development, Foxconn EV Asset Management, and Foxconn EV System, totals US$375 million, with expected gains exceeding US$170 million.
Optimizing portfolio and operational performance
Despite the disposal, Foxconn emphasized that its previously released North American Model C electric vehicle (EV) business remains unchanged. The main purpose of this asset disposal is to revitalize resources at the Lordstown plant and further optimize its product portfolio and operational performance.
Dual focus on EVs and AI servers
As demand for AI computing power in the US continues to grow, future development plans will build upon the company's existing foundation in the EV industry while focusing on AI data center development. Through its recent strategic agreement with Teco Electric and Machinery, Foxconn aims to strengthen standardized and modular architectures, as well as expand in the AI server market. Going forward, the company's US market strategy will prioritize a dual-track approach, advancing both EVs and AI servers.
Transaction details yield substantial gains
According to Foxconn's announcement, the transaction includes the land and buildings of the Lordstown facility owned by Foxconn EV Property Development. The site covers 599.6 acres, with a building area of approximately 6.04 million square feet, or roughly 560,000 square meters. The asset was acquired in 2023 for US$78.7 million and is being sold to Crescent Dune for US$88 million, with an expected disposal gain of around US$15.69 million.
The other two transactions involve the sale of machinery and equipment by Foxconn EV Asset Management and Foxconn EV System, with transaction amounts of US$257 million and US$30 million, respectively, totaling US$287 million. The combined expected disposal gains from these two deals amount to US$154 million.
Article edited by Jerry Chen
