Foxconn Commits $1.37B to Build AI Compute Cluster and Supercomputing Hub

Published: 28 Oct 2025

Author: Precedence Research

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A leading player in Taiwan, Foxconn, revealed its upcoming plan by confirming that its board of directors has approved an investment plan to procure AI computer cluster equipment and a supercomputing center. The company is investing $1.37 billion in the project. The investment will proceed from December 2025 to December 2026 using their own funds, according to the company sources.

Foxconn further states that the purpose of the plan is to build and expand cloud computing service platforms and to accelerate the development of the group's three smart platforms. But it's not revealed exactly where this investment will be made.

Hon Hai Precision Industry Co., Ltd, also known as the world’s largest contract electronics maker, has been ramping up its investments in AI and cloud infrastructure as it seeks to develop new growth drivers beyond smartphones and conventional electronics manufacturing. The company announced its plans in May, confirming its aim to build an AI center in Taiwan with NVIDIA, powered by 100 megawatts. Moreover, in August, the company planned to manufacture data center equipment with the help of Japan's SoftBank firm at the former EV factory in Ohio. This will be a part of the stargate project to support and excel the U.S. artificial intelligence infrastructure.

This investment is a key part of Foxconn’s strategic pivot away from its reliance on low-margin consumer electronics, such as iPhones, toward higher-margin AI servers, semiconductors, and EVs. This strategic move increases competition among original design manufacturers in Taiwan, like Wistron, Quanta Computers, and Foxconn. Foxconn is further solidifying its position by offering end-to-end AI Factory solutions, such as specialized data centers built on Nvidia GPU infrastructure. This move boosts the company's profits and stabilizes its position in the AI solutions market.

The investment further reinforces Foxconn's semiconductor vertical integration strategy. By designing AI-specific integrated circuits, the firm ensures that crucial components are safe and that its products deliver greater value. In addition, Foxconn will offer AI computing resources to its partners and leading marketers, such as NVIDIA and TSMC, fueling their own R&D capabilities for AI solutions.