Taipei, Aug. 12 (CNA) Taiwan-based Hon Hai Precision Industry Co. said Wednesday that its capital expenditure for 2026 will focus on AI production expansion, while the company will allocate funds to strengthen global R&D and production, especially in the United States. Speaking at an investor conference, Hon Hai's rotating CEO Michael Chiang (蔣集恆) reiterated the company's capex growth target of over 30 percent for 2026, saying it will continue to expand production capacity of critical AI devices such as AI servers, AI racks and liquid cooling equipment. In 2025, Hon Hai's capex stood at NT$173.8 billion (US$5.39 billion), up NT$37.4 billion from a year earlier, Hon Hai's chief financial officer David Huang (黃德才) said. The new AI racks are expected to become the core AI product of Hon Hai, also known as Foxconn globally, in 2027, he added. The rotating CEO said shipments of AI racks are expected to grow at a double-digit pace in the third quarter.