Nvidia (NVDA) and Foxconn Drop $1.4B Bombshell: Taiwan Data Center Deal Signals AI Arms Race Escalation

Silicon heavyweights Nvidia and Foxconn just lit a $1.4 billion fuse under Taiwan's tech ecosystem—and Wall Street's scrambling to price in the AI infrastructure boom.

The move: A joint data center play that'll pump Nvidia's cutting-edge chips into Foxconn's manufacturing juggernaut. No details spared—this is a full-scale bet on AI's insatiable appetite for compute.

The subtext: While analysts debate whether this is strategic genius or desperate FOMO, one thing's clear—the semiconductor wars just entered hyperdrive. (Cue the usual suspects upgrading NVDA price targets tomorrow.)

Bottom line: When two tech titans drop nine figures on a single facility, it's either visionary—or the most expensive game of keep-up ever played. Place your bets.

TLDR

• Nvidia is partnering with Foxconn on a $1.4 billion supercomputing center in Taiwan set to launch by the first half of 2026.
• The facility will be Asia’s first data center powered by Nvidia’s new Blackwell GB300 chips and Taiwan’s largest GPU cluster.
• Foxconn serves as Nvidia’s main manufacturer of AI racks, producing 1,000 units per week with plans to increase capacity.
• Nvidia is promoting a GPU-as-a-Service model through the partnership, emphasizing compute leasing over facility ownership.
• Nvidia is also working with Foxconn to bring AI technology to factories and manufacturing lines.

Nvidia unveiled plans for a major supercomputing facility in Taiwan. The project partners the chipmaker with electronics manufacturer Foxconn.

The $1.4 billion data center will become Taiwan’s largest GPU cluster. It’s scheduled to come online in the first half of 2026.

NVIDIA Corporation, NVDA

The facility will be powered by Nvidia’s new Blackwell GB300 chips. This makes it Asia’s first GB300 AI data center.

Foxconn created a new business unit called Visionbay.ai for the project. The unit will handle AI supercomputing and cloud operations.

Foxconn-Nvidia $1.4 billion Taiwan supercomputing cluster to be ready by H1 2026, Foxconn says https://t.co/EK8z0VtjO8 https://t.co/EK8z0VtjO8

— Reuters (@Reuters) November 21, 2025

Alexis Bjorlin, a Nvidia vice president, spoke at Foxconn’s tech day event. She outlined the company’s vision for compute resource rental.

Shifting to Service-Based Computing

“Renting compute resources may offer a far better return on investment, enabling flexibility and enabling companies to scale their compute according to both product and business cycles,” Bjorlin said.

The 27-megawatt facility represents Nvidia’s push into service-based AI infrastructure. The GPU-as-a-Service model aims to make AI adoption easier for enterprises.

Visionbay.ai will offer several services through its AI Factory ecosystem. These include GPU leasing, Nvidia-native software solutions and a cloud-based AI App Store.

The business model lowers barriers for companies adopting AI. Enterprises can access training, fine-tuning, development and inference capabilities powered by Nvidia’s architecture.

Bjorlin said building individual facilities may no longer make economic sense. She argued that renting provides better flexibility as GPU technology accelerates.

Foxconn now serves as Nvidia’s main manufacturer of AI racks. These server racks house chips, cables and equipment for AI workloads.

Foxconn Chairman Young Liu told Reuters the company can produce 1,000 AI racks per week. That capacity is expected to grow next year.

Expanding Manufacturing Partnerships

Spencer Huang attended Foxconn’s tech day event. Huang manages Nvidia’s robotics product line and is the son of Nvidia founder Jensen Huang.

He said Nvidia is working with Foxconn to bring AI to factories and manufacturing lines. This collaboration extends beyond the supercomputing center project.

The tech day brought together Foxconn’s partners and clients. Attendees included representatives from Nvidia, OpenAI and Uber.

Foxconn gave a positive outlook on AI-related demand for 2026. The company called AI a major growth driver for next year.

Liu said Foxconn plans to invest $2 billion to $3 billion annually in AI. The electronics manufacturer has been expanding beyond its traditional iPhone assembly business.

Foxconn also announced a partnership with OpenAI at the event. The deal involves producing key components for OpenAI’s data centers in the United States.

Neo Yao leads Visionbay.ai as CEO. The company will operate the Taiwan supercomputing center once it comes online.

The facility represents a push toward sovereign AI infrastructure in Taiwan. The GB300 NVL72 systems will support scalable enterprise-grade computing.

Foxconn founder Terry Gou made an appearance at the tech day. The event showcased the deepening partnership between the two technology companies.