There is speculation that Foxconn will be building the connected specs in a U.S. located factory in Santa Clara, California. This isn't the first time that Google has paid out money to a Glass related company. Last month the company acquired a 6.3% stake in Taiwanese chip designer Himax Display. Some of the output from that company does find its way into Google Glass.
Google Glass is expected to have competition from Chinese search firm Baidu and it certainly isn't unrealistic to expect other firms to come up with similar products. By picking up whatever patents it can now, Google is trying to avoid the situation that many Android manufacturers have found themselves in in terms of patent battles. Google Glass is expected to be made available to the general public in 2014.
source: WSJ via TheRegister