Foxconn, Apple’s main iPhone assembler based in Taiwan, is making a significant move into the artificial intelligence (AI) infrastructure sector by partnering with TECO Electric & Machinery. Foxconn has acquired a 10% stake in TECO, which has expertise in areas including electric vehicle motors, energy storage, and data center construction. This partnership aims to develop comprehensive AI data center solutions, combining Foxconn’s manufacturing prowess in servers, cooling systems, and uninterruptible power supplies with TECO’s experience in power infrastructure for data centers.
Foxconn is also collaborating with Nvidia to manufacture server racks designed specifically for AI workloads. The strategic alliance targets expanding AI data center infrastructure not only in Taiwan and Asia but also in the US and the Middle East, supporting the growing and demanding computational needs of generative AI technologies.
Apple stands to benefit from this development given its ambitious generative AI plans that require expanded global server infrastructure to support AI tasks. There have been rumors that Apple may build its own servers for AI processing, and Foxconn’s involvement positions it as a key partner in enabling Apple’s AI ambitions, potentially powering forthcoming Apple Intelligence features like more context-aware Siri capabilities.
This move reflects Foxconn’s strategic diversification beyond consumer electronics assembly into high-performance AI computing infrastructure, positioning itself to capitalize on the booming AI industry and meet the demands of next-generation data centers.