Taiwan’s Foxconn, one of the world’s largest technology manufacturers, has announced plans to invest up to $1.4 billion (NT$42 billion) in new equipment for an AI data center. The investment supports Foxconn’s growing focus on artificial intelligence and advanced technologies.

The company, officially known as Hon Hai Precision Industry, revealed in a stock exchange filing on Monday that the investment will take place between December 2025 and December 2026. The funds will come entirely from Foxconn’s own resources. According to the company, this move will help expand its cloud computing services and speed up progress in its three main business areas — smart manufacturing, smart electric vehicles (EVs), and smart cities.

This investment follows Foxconn’s earlier announcement in May to build a 100-megawatt AI data center in Taiwan in partnership with Nvidia, the leading U.S. chipmaker. The new center will use Nvidia’s advanced computing power to make Foxconn’s factories more efficient, create better driver-assistance systems for its electric vehicles, and enhance connected transport systems across Taiwan.

Foxconn is best known globally as the main assembler of Apple’s iPhones, but in recent years, it has successfully diversified its business. It now produces high-end AI servers used for data centers and cloud computing. In fact, in the second quarter of 2025, Foxconn’s revenue from AI servers and cloud products surpassed that from smartphones and other consumer electronics for the first time. The company said that AI-related products made up 41% of its NT$1.8 trillion ($55 billion) revenue during that period, compared with 35% from smart consumer electronics.

Foxconn now claims to hold over 40% of the global AI server market, making it one of the most dominant players in the fast-growing AI hardware industry.

In August 2025, Foxconn also announced that it had sold its electric vehicle factory in Ohio, USA, to SoftBank, the Japanese investment giant. However, Foxconn will continue to operate the facility, which will now produce AI servers. The Ohio plant will help supply equipment for Stargate, a massive $500 billion AI data center project backed by SoftBank, OpenAI, Oracle, and Abu Dhabi’s MGX fund.

This strategic shift highlights Foxconn’s transformation from a traditional electronics assembler to a major force in the AI and cloud technology sectors. The company’s close partnership with Nvidia positions it well to benefit from the global demand for AI computing power.

With this $1.4 billion investment, Foxconn aims to strengthen its role in shaping the future of AI infrastructure, while supporting industries such as electric vehicles and smart cities. The move also underlines Taiwan’s growing importance as a global hub for advanced technology and AI innovation.

Published: 29th October 2025

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