Foxconn to Pour $1.37 Billion Into AI Supercomputing Drive

Apple AAPL supplier Foxconn Technology (FXCOF) is going all in on artificial intelligence. The company said its board has approved plans to spend up to NT$42 billion (about $1.37 billion) on new equipment for an AI compute cluster and a supercomputing center, according to Reuters. The goal: strengthen its cloud services and speed up development across its three smart platforms.

The investment, which will run from December 2025 to December 2026, will be funded entirely with Foxconn's own cash. While the company didn't specify where the new infrastructure will be built, one person familiar with the plans told Reuters it's expected to be in Taiwan.

Foxconn's stock rose about 2% in Taipei after the announcement, signaling investor optimism around its AI ambitions. The company best known as Apple's main manufacturing partner has been steadily expanding into cloud and AI infrastructure. Earlier this year, it teamed up with SoftBank to make data center gear in Ohio and with Nvidia NVDA to develop a 100MW AI center in Taiwan.

Investors will be watching closely to see how Foxconn's latest move shapes its transition from contract manufacturer to full-fledged AI hardware powerhouse.