Taiwan’s Foxconn, the world’s largest contract electronics manufacturer, has approved a major investment plan worth up to NT$42 billion ($1.37 billion) to develop advanced artificial intelligence and supercomputing infrastructure.
The initiative marks another strategic move by the company to diversify beyond its traditional electronics and smartphone manufacturing business.
In a filing published late Monday, Foxconn—officially known as Hon Hai Precision Industry Co. Ltd.—said its board of directors had approved plans to procure equipment for an AI compute cluster and a supercomputing center. The investment will be funded internally and executed over 12 months, from December 2025 to December 2026.
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According to the company, the project aims to “expand the cloud compute service platform and accelerate the development of the Group’s three smart platforms,” though Foxconn did not specify the exact locations or details of the facilities. However, a person familiar with the matter told Reuters that the investment will be made in Taiwan. The company has not yet issued an official response to follow-up requests for comment.
The move points to Foxconn’s increasing commitment to artificial intelligence and cloud infrastructure—areas it sees as crucial for long-term growth as global demand for consumer electronics stabilizes. The company has been steadily pivoting towards next-generation computing technologies to strengthen its role in the evolving digital economy.
Earlier this year, in May, Foxconn announced a partnership with Nvidia to establish an artificial intelligence center in Taiwan. The facility is expected to have a power capacity of 100 megawatts and will focus on high-performance computing for AI model training and data-intensive applications. Nvidia, the world’s leading AI chipmaker, has become a key partner in Foxconn’s bid to integrate AI capabilities into its operations and expand its presence in data infrastructure.
In August, Foxconn further revealed plans to collaborate with Japan’s SoftBank to manufacture data center equipment at its former electric vehicle factory in Ohio, United States. The initiative is part of the so-called “Stargate Project,” which aims to strengthen U.S. artificial intelligence infrastructure and reduce reliance on Chinese-made hardware.
Foxconn’s latest NT$42 billion plan signals a continuation of its transformation strategy under Chairman Young Liu, who has repeatedly emphasized that the company must evolve from a manufacturing powerhouse into a global technology and solutions provider.
Some analysts believe the investment is part of Foxconn’s growing ambition to position itself at the heart of the AI supply chain, mirroring similar moves by major technology companies racing to secure computing capacity and data infrastructure amid surging demand for generative AI systems.
The development also highlights Taiwan’s increasing role as a global hub for AI and semiconductor manufacturing. Alongside companies like TSMC and Nvidia, Foxconn’s continued investment in AI infrastructure could help bolster the island’s strategic importance in the world’s fast-expanding AI ecosystem.
Foxconn’s move to roll out multi-billion-dollar AI infrastructure projects over the next two years will mark a fundamental shift in its business focus, from assembly lines to advanced computing, marking what could become one of the most significant transformations in its 50-year history.
