Foxconn, Apple’s longtime manufacturing partner, is making a major move into artificial intelligence infrastructure. The company has purchased a 10% stake in TECO Electric & Machinery to support its growing AI data center business.
This strategic investment reflects Foxconn’s shift beyond consumer electronics as it seeks to lead in the next wave of tech—AI-powered computing.
From iPhones to AI Infrastructure
Known for assembling Apple’s iPhones, Foxconn is now building server racks designed for AI workloads. By teaming up with TECO, a company that has evolved from making car engines to building data centers, Foxconn is setting its sights on global infrastructure projects.
Together, the two companies aim to deliver all-in-one AI data center solutions across Taiwan, the U.S., and the Middle East. Their partnership will also focus on energy services and low-carbon smart factory developments.
This deal includes a share exchange, with Foxconn acquiring a 10% stake in TECO as part of its broader AI strategy.
Apple Could Be the Next Big Beneficiary
Foxconn’s deeper involvement in AI infrastructure could also benefit Apple. As Apple continues to invest in artificial intelligence, it will need more server power to support future technologies and services.
Given the strong relationship between the two companies, Foxconn is in a good position to meet Apple’s evolving needs. Industry analysts suggest that Foxconn may soon play a critical role in building the infrastructure for Apple’s AI ambitions.
A Long-Term Vision for AI
Foxconn’s investment signals a long-term bet on the infrastructure behind next-generation computing. With AI demand soaring, the company is aligning its resources to serve one of the most promising sectors in tech.
As the global race to power AI continues, Foxconn is moving fast to secure its position—and this TECO deal is just the beginning.
