Foxconn to Invest $1.37 Billion in AI Compute Cluster and Supercomputing Center

Taiwan-based Foxconn said its board has approved an investment plan worth as much as NT$42 billion, or about $1.37 billion, to acquire equipment for a new AI compute cluster and supercomputing center. The investment will be funded internally and carried out between December 2025 and December 2026, according to a company filing released on Monday.

Foxconn stated that the initiative aims to expand its cloud computing services and accelerate progress across its “three smart platforms,” though it did not specify the project’s location or detailed scope. A source familiar with the plan told local media that the investment will be made in Taiwan.

The company, formally known as Hon Hai Precision Industry Co., has been actively pivoting toward AI, data centers, and cloud technology in search of new growth beyond consumer electronics. In May, Foxconn announced a partnership with Nvidia to develop an AI center in Taiwan, designed to operate with up to 100 megawatts of computing power.

More recently, in August, Foxconn said it would collaborate with Japan’s SoftBank to produce data center equipment at its former electric vehicle plant in Ohio. The project, part of the “Stargate” initiative, aims to strengthen U.S. AI infrastructure.

Foxconn’s latest investment signals its deepening commitment to artificial intelligence as global demand for compute power and advanced chip infrastructure continues to soar.