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

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.

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