Foxconn to Invest $1.37 Billion in AI Compute Cluster
Taiwan's Foxconn announced that its board has greenlighted an investment strategy to acquire machinery for an AI compute cluster and a supercomputing center, enabling it to invest up to NT$42 billion ($1.37 billion).
The company stated in a filing released late that the investment will occur from December 2025 to December 2026 utilizing its own resources.
Foxconn stated that the aim of the initiative is to "broaden the cloud computing service platform and speed up the advancement of the Group's three intelligent platforms." It did not provide further details or specify where the investment would occur.
An individual knowledgeable about the situation stated that the investment will occur in Taiwan. Foxconn did not promptly reply to a request for a statement.
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The largest contract electronics manufacturer globally, known as Hon Hai Precision Industry Co Ltd, has been increasing its investments in artificial intelligence and cloud infrastructure in pursuit of new growth avenues beyond smartphones and conventional electronics production. In May, the firm revealed plans to construct an artificial intelligence center with Nvidia in Taiwan, aiming for 100 megawatts of power capacity.
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In August, the firm announced its intention to produce data center equipment alongside Japan's SoftBank at the Taiwanese company's old electric vehicle plant in Ohio, part of the Stargate initiative aimed at enhancing US artificial intelligence infrastructure.
Founded in Taiwan in 1974, Hon Hai Technology Group (Foxconn) (2317: Taiwan) is the largest electronics producer globally. Foxconn is a top provider of technological solutions, consistently utilizing its knowledge in software and hardware to merge its distinctive manufacturing systems with new technologies.
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Leveraging its knowledge in Cloud Computing, Mobile Devices, IoT, Big Data, AI, Smart Networks, and Robotics/Automation, the Group has broadened its abilities into areas such as electric vehicle development, digital health, and robotics, along with three essential technologies – AI, semiconductors, and next-generation communications technology – crucial for propelling its long-term growth strategy and four primary product pillars: Consumer Products, Enterprise Products, Computing Products, and Components and Others. In 2021, Hon Hai's yearly income totaled NT$5.99 trillion.