Apple’s main manufacturer Foxconn is betting big on the AI boom, teaming up with TECO to offer an all-in-one solution for building next-gen data centers.
The rapid rise of artificial intelligence has kicked off a global race to build the infrastructure needed to support it. Tech giants and manufacturers alike are scrambling to claim a piece of the action.
To cash in on that, Foxconn is buying a 10% stake in TECO Electric & Machinery as part of its recent push into AI data center infrastructure, according to CNBC. The deal marks another step in Foxconn’s shift beyond consumer electronics.
The Taiwanese firm, best known for assembling Apple’s iPhone, is aiming to replicate its hardware dominance in the fast-growing world of AI. Its latest moves suggest a long-term bet on the infrastructure powering the next generation of computing.
TECO, once a car engine maker, has since expanded into EVs, energy storage, and data center construction. Foxconn, meanwhile, already manufactures server racks designed for AI workloads and is a key Nvidia partner.
Together, the companies plan to offer an all-in-one solution for building out AI data centers in Taiwan, the Middle East, and the U.S. Their partnership also covers energy services and low-carbon smart factory projects.
Foxconn will take a 10% stake in TECO as part of the deal, and as part of a share exchange.
Apple needs to get in on Foxconn’s new interest too. It stands to reason that Foxconn will get tapped for a large chunk of Apple’s demand.
Apple will likely benefit from the deal as well. Apple’s future AI ambitions require expanded server infrastructure, globally.
Given the companies’ longstanding ties, Foxconn is well-positioned to handle any future demand.
