Foxconn Approves NT$42 Billion Investment to Boost AI and Supercomputing Capabilities

Taiwan’s Foxconn Technology Group, also known as Hon Hai Precision Industry Co. Ltd, has announced that its board of directors approved an investment plan worth up to NT$42 billion (approximately $1.37 billion) to enhance its artificial intelligence and cloud computing infrastructure. According to a filing released late Monday, the investment will fund the procurement of equipment for an advanced AI compute cluster and a supercomputing center between December 2025 and December 2026, financed entirely from the company’s own funds.

The initiative aims to expand Foxconn’s cloud computing service platform and accelerate development across its three “smart platforms,” which include electric vehicles, digital health, and robotics. While the company did not disclose specific locations for the new facilities, a person familiar with the matter confirmed that the investment will be made in Taiwan. Foxconn has yet to issue an official comment on the matter.

This move underscores Foxconn’s strategic pivot toward artificial intelligence and cloud infrastructure as it diversifies beyond traditional electronics manufacturing and smartphone assembly. The world’s largest contract electronics maker is positioning itself as a key player in the next wave of technology innovation driven by AI.

Earlier this year, Foxconn revealed plans to build a large-scale AI data center in collaboration with Nvidia in Taiwan, designed to operate with a power capacity of 100 megawatts. In August, the company announced a partnership with Japan’s SoftBank to produce data center equipment at its former electric vehicle factory in Ohio, as part of the Stargate initiative aimed at strengthening U.S. AI infrastructure.

With this substantial investment, Foxconn is reinforcing its long-term strategy to become a global leader in AI computing and cloud technology, further establishing Taiwan’s central role in the evolving global AI ecosystem.