Foxconn, the world’s largest contract electronics manufacturer, has announced plans to invest up to NT$42 billion (US$1.37 billion) in building an AI compute cluster and supercomputing centre. The investment will be made between December 2025 and December 2026, fully funded by the company’s internal resources.
In a filing released late Monday, Foxconn said the move aims to expand its cloud computing service platform and accelerate the development of its three smart platforms — key pillars of the company’s long-term transformation strategy. Foxconn did not disclose the exact location of the project. Reuters news report indicated that the investment will be made in Taiwan.
Foxconn Strengthens AI and Cloud Infrastructure Strategy
The latest investment reflects Foxconn’s push into artificial intelligence, cloud computing, and digital infrastructure—areas the company views as crucial for its next phase of growth.
Foxconn, best known for assembling Apple’s iPhones, has been diversifying its business portfolio to reduce reliance on consumer electronics. The company is positioning itself as a strategic partner in the global AI ecosystem, leveraging its scale, manufacturing expertise, and partnerships with global tech leaders.
Partnerships with Nvidia and SoftBank Boost AI Ambitions
In May 2025, Foxconn announced plans to build an AI centre in Taiwan in collaboration with Nvidia. The facility, designed to operate with 100 megawatts of power, will serve as a foundation for developing advanced AI models and data infrastructure.
In August 2025, Foxconn revealed a partnership with Japan’s SoftBank Group to manufacture data centre equipment at its former electric vehicle factory in Ohio, USA. The collaboration, known as the Stargate Project, aims to enhance AI infrastructure across the United States.
Foxconn invested about US$1.5 billion to expand its iPhone production in India through its subsidiary, acquiring ~12.7 billion shares in Yuzhan Technology India (in Tamil Nadu) as part of its supply-chain diversification strategy.
In Karnataka, the company invested in a facility (300-acre site near Bengaluru/Devanahalli) aimed at producing large volumes of iPhones by December 2025 and later years.
An additional investment of around Rs 15,000 crore (~US$1.8 billion) for manufacturing projects in Tamil Nadu was announced, including likely EV-battery and advanced-technology manufacturing, creating an estimated ~14,000 jobs.
Foxconn invested over US$200 million into its Mexican subsidiary (via Cloud Network Technology Singapore) to expand AI server production capabilities, including for NVIDIA’s GB200/Blackwell AI servers.
Foxconn sold its former EV factory in Lordstown, Ohio to SoftBank Group for about US$375 million, but will continue operating the site via a joint venture. The site will manufacture data-centre equipment for the “Stargate” project.
In partnership with SoftBank, Foxconn will manufacture data-centre gear at that Ohio site to support the US AI-infrastructure push.
A Strategic Shift Toward “Smart Platforms”
The NT$42 billion initiative aligns with Foxconn’s vision of evolving into a “smart technology solutions company.” The firm’s three smart platforms — smart manufacturing, smart EVs, and smart cities — are central to its transformation strategy.
Rajani Baburajan
