Foxconn's $1.37 Billion Investment in AI and Supercomputing Infrastructure

Foxconn to Invest $1.37 Bn in AI Compute Cluster and Supercomputing Centre | AIM

The company has not disclosed further details on the scope or partners involved in the newly approved AI project. Taiwan's Foxconn has reportedly said its board has approved an investment plan worth up to NT$42 billion (~$1.37 billion) to build an AI compute cluster and a supercomputing centre. The investment will be made between December 2025 and December 2026 using the company's own funds, Foxconn said in a filing on Monday, Reuters reported. The company stated the purpose of the plan is "to expand the cloud compute service platform and accelerate the development of the Group's three smart platforms." This likely refers to Foxconn's three smart platforms -- Smart Manufacturing, Smart Electric Vehicle (EV), and Smart City -- commonly called the company's '3+3' strategy. Foxconn, formally known as Hon Hai Precision Industry Co Ltd, the world's largest contract electronics maker, is seeking to diversify its business amid slowing global demand for traditional consumer electronics. Its recent investments in AI and data infrastructure signal a move towards high-performance computing and cloud services. The company has not disclosed further details on the scope or partners involved in the newly approved AI project. It has also not responded to AIM's queries regarding this investment yet. In October last year, Foxconn announced plans to build Taiwan's fastest AI supercomputer with NVIDIA's flagship Blackwell architecture, noting that each rack has 36 NVIDIA Grace processors and 72 NVIDIA Blackwell GPUs connected with NVIDIA's NVLink, providing 130 TB per second of bandwidth. Then, in January 2025, it announced a partnership with NVIDIA to develop humanoid robots in Kaohsiung, underscoring the firm's ambition to move beyond traditional manufacturing into robotics and advanced AI infrastructure. In May, Foxconn confirmed plans to proceed with a $1.5 billion investment to set up a new component manufacturing facility near Chennai. Following this in June, Foxconn announced plans to invest $1.49 billion to set up an iPhone manufacturing facility in India. This comes after India emerged as a key hub for iPhone manufacturing, with nearly 97% of the devices assembled in the country. In August, it said it would manufacture data centre equipment with Japan's SoftBank at its former electric vehicle factory in Ohio. The collaboration is part of the Stargate project, which aims to advance the US AI infrastructure.

Nvidia Supplier Foxconn Goes All-In On AI With $1.37 Billion Supercomputing Investment - Apple (NASDAQ:AAPL), Hon Hai Precision (OTC:HNHAF)

Nvidia (NASDAQ:NVDA) supplier Foxconn Technology Group, also known as Hon Hai Precision Industry Co., Ltd (OTC:HNHAF), has announced a significant investment in artificial intelligence (AI) and supercomputing infrastructure. Entirely Self-Funded AI Compute Plan Foxconn's board has approved up to NT$42 billion (around $1.37 billion) to build an AI compute cluster and a supercomputing center. The investment, to be funded entirely from the company's own resources, will take place between December 2025 and December 2026, according to a filing released late Monday, Reuters reported. Foxconn said the investment is intended to grow its cloud computing platform and speed up development of its three smart platforms. The company did not share additional details or clarify where the investment will be allocated. See Also: Elizabeth Warren And Adam Schiff Introduce Senate Resolution Condemning Trump's Pardon Of Changpeng Zhao Strategic Shift From iPhones to AI Earlier in the year, Foxconn unveiled its in-house large language model with reasoning capabilities, dubbed FoxBrain, using Nvidia tech, which was trained in just four weeks. FoxBrain is built on the architecture of Meta Platforms Inc.'s (NASDAQ:META) publicly available Llama 3.1 large language model. These strategic shifts have paid off, with the Taiwanese firm's profit soaring 27% to $1.47 billion in the second quarter of 2025, driven by explosive demand for AI servers and sustained iPhone production for Apple Inc. (NASDAQ:AAPL). The company's second-quarter revenue also saw a 16% increase from the prior year period, reaching TWD 1.79 trillion ($59.6 billion). READ NEXT: Cramer Warns We're 'Flying Blind' On Nvidia In China -- While Wall Street Rides The Reopening Trade Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. AAPLApple Inc$268.76-0.02%OverviewHNHAFHon Hai Precision Industry Co LtdNot Available-%METAMeta Platforms Inc$753.650.38%NVDANVIDIA Corp$190.99-0.26%Market News and Data brought to you by Benzinga APIs

Foxconn to invest up to $1.37 billion in AI compute cluster, supercomputing centre

TAIPEI (Reuters) -Taiwan's Foxconn said its board of directors has approved an investment plan to procure equipment for a AI compute cluster and a supercomputing centre, that will allow it to spend up to NT$42 billion ($1.37 billion). The investment will be made from December 2025 to December 2026 using its own funds, the company said in a filing published late on Monday. Foxconn said the purpose of the plan is "to expand the cloud compute service platform and accelerate the development of the Group's three smart platforms." It did not elaborate or say where the investment would be made. The world's largest contract electronics maker, also known as Hon Hai Precision Industry Co Ltd, has been stepping up its investments in artificial intelligence and cloud infrastructure as it seeks new growth drivers beyond smartphones and traditional electronics manufacturing. In May, the company announced it would build an artificial intelligence centre with Nvidia in Taiwan targeted to have 100 megawatts of power. In August, the company said it plans to manufacture data centre equipment with Japan's SoftBank at the Taiwanese firm's former electric vehicle factory in Ohio, part of the Stargate project to advance U.S. artificial intelligence infrastructure. (Reporting by Wen-Yee Lee; Editing by Stephen Coates)