@FAQ:
Q. If I have the Increased Factory Production development, is the maximum possible damage inflicted on my
industrial complexes by strategic bombing raids and rocket attacks increased along with their production
capacity?
A. No. The increase in production capacity is an increase in the efficiency of your industrial complexes, not their size.
For this reason, the physical target of bombing remains the same, so the amount of damage that can be done doesn’t
increase. The amount of damage that can be done is based on the IPC value of the territory, and that doesn’t change
when you get Increased Factory Production.
http://www.wizards.com/AvalonHill/rules/AxAl-AnEd_Errata.pdf