Foxconn Makes $1.37 Billion Bet on AI and Supercomputing Future

Manufacturing giant Foxconn just dropped a massive $1.37 billion wager on the AI revolution—because apparently building every iPhone wasn't futuristic enough.

The Hardware-to-AI Pivot

They're shifting from assembling gadgets to chasing compute dominance. That billion-dollar commitment screams they're serious about competing in the high-stakes AI infrastructure game.

Supercomputing Arms Race

While traditional manufacturers worry about supply chains, Foxconn's buying into the silicon brain race. Because nothing says 'stable investment' like dumping cash into the most volatile, hype-driven sector since crypto—but at least this time there might be actual products.

Foxconn expands AI investments in Taiwan

Foxconn has been growing its investments in cloud infrastructure and artificial intelligence (AI).  Foxconn’s investments in AI and cloud infrastructure are part of its plan to identify new growth drivers beyond its primary industries, which include manufacturing cellphones and other conventional electronics.

In August, Hon Hai Precision Industry announced that it would collaborate with Japan’s SoftBank to produce data center equipment in Ohio. The collaboration is a component of the massive Stargate project, which President TRUMP announced soon after taking office in late January.  

The goal of the $500 billion initiative is to enhance the United States’ artificial intelligence infrastructure. As previously reported by Cryptopolitan, the project aimed to create more than 100,000 jobs for Americans. Initially, the alliance promised to invest $100 billion right away, with additional investments spread over the following four years.

In May, Hon Hai Precision Industry announced that it will collaborate with Nvidia to construct an artificial intelligence center in Taiwan with a power capacity of 100 megawatts.

Speaking at Taipei’s annual Computex trade exhibition, Foxconn Chairman Young Liu announced the plan to build a massive AI supercomputer in Taiwan. The announcement came a day after Nvidia revealed plans to build a massive AI supercomputer in Taiwan, in collaboration with Foxconn, contract chipmaker TSMC, and the government.

Liu revealed the AI data center will require massive power and will be built in phases. He emphasized that some phases will be planned in the southwestern city of Kaohsiung and others will be potentially located in other cities across Taiwan, depending on power availability.

“This AI data center is targeted to have 100 megawatts of power. We know that power is a very critical resource in Taiwan. I don’t want to use the word ‘shortage’. So it will take a few steps to reach 100 megawatts. We’ll start with 20 megawatts … then add another 40.” 

-Young Liu, Chairman of Hon Hai Technology Group (Foxconn)

Nvidia CEO Jensen Huang said at the same occasion that the AI center is meant to support the whole Taiwan ecosystem.  He stated that the facility will be open to Foxconn, Nvidia, and other stakeholders throughout Taiwan, adding that Nvidia presently has 350 partners in Taiwan.

Foxconn, Nvidia advance U.S. AI robotics

Earlier this year, amid ongoing tariff chaos, Nvidia announced that it would manufacture some of its AI supercomputers entirely in the United States. The GPU giant announced in April that it would collaborate with its production partners to commission over a million square feet of manufacturing space for constructing and testing AI supercomputers in Texas and Blackwell GPUs in Arizona.

On June 20, Foxconn also announced that it will construct supercomputer manufacturing facilities in Houston, while Wistron will set up shop in Dallas. Nvidia anticipates increasing mass production at its facilities in Houston and Dallas over the next 12 to 15 months.

Although originally reported in June, Foxconn and Nvidia’s ambitions to incorporate humanoid robots into their U.S. production line are still in the early stages of development. The two firms are in advanced talks to deploy the robots at the Houston AI server production factory. The deployment is anticipated to be finalized in the upcoming months.

Foxconn had earlier announced that it was working on its own humanoid robots at its research center in Kaohsiung, Taiwan, utilizing Nvidia’s technology and software. Hon Hai Precision Industry revealed that in November, two robot models will be on display, one with wheels and the other with legs.

Humanoid robots are anticipated to begin operations in the first quarter of next year, as the plant starts producing Nvidia’s GB300 AI servers.

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