Foxconn to invest up to $1.37 billion to expand cloud compute services and accelerate AI development

Foxconn, the Taiwan-based electronics manufacturer, announced late Monday that its board of directors has approved an investment of NT$42 billion ($1.37 billion) to build an AI compute cluster and supercomputing centre.

Foxconn said in a company filing published late on Monday that it will fund the planned investment using its own resources between December 2025 and December 2026.

What will the funds be used for?

Foxconn said the substantial investment aims to “expand the cloud compute service platform and accelerate the development of the Group's three smart platforms.”

While the company did not provide specific details or the location of the project, a person familiar with the matter told Reuters that the investment will likely be made in Taiwan.

Foxconn's push into AI development

This initiative is part of Foxconn's ongoing strategy to strengthen its position in artificial intelligence (AI) and cloud infrastructure. Known formally as Hon Hai Precision Industry Co Ltd, Foxconn is the world's largest contract electronics manufacturer and has been actively seeking to diversify its growth drivers beyond the company's traditional reliance on smartphones and electronics manufacturing.

The recent announcement by Foxconn follows two other key AI-related developments announced earlier this year.

In May, Foxconn announced that it plans to build an AI centre in Taiwan, in collaboration with Nvidia, which is targeted to have a power capacity of 100 megawatts.

In another development, in August, the company announced a partnership with Japan's SoftBank to manufacture data centre equipment at the Taiwanese firm's former electric vehicle factory in Ohio, United States, as part of the Stargate project aimed at advancing US AI infrastructure.

Foxconn's investments in India

Foxconn is also expanding its footprint in India, particularly in Tamil Nadu, where it plans to manufacture more electronic components to boost profitability. The company recently reaffirmed its planned investment of $1.5 billion in the region, Mint reported.

In addition to assembling iPhones for Apple, Foxconn is reportedly exploring opportunities to produce components for other smartphone companies, including Google Pixel, Mint reported.

Over the last decade, Foxconn has committed to investing $11.5 billion in India. It first announced a $5 billion investment for the first time in the country in 2015, and in August 2025, company chairman Young Liu confirmed that its India investment had crossed $10 billion.

A Mint report said the firm's subsidiary, Bharat FIH Ltd, already assembles two-thirds of nearly 25 million iPhones in India. The company plans to double its local production, as Apple deepens its manufacturing footprint in India.