Taiwan-based electronics giant Foxconn, Apple’s longstanding contract manufacturer, is making a major move into AI infrastructure by acquiring a 10% stake in TECO Electric & Machinery Co. through a strategic share-swap deal. The partnership aims to deliver turnkey construction and operations of next-generation AI data centers—from server hardware to cooling and power systems.
The alliance positions Foxconn to offer modular, greenfield AI infrastructure solutions across key regions including the U.S., Taiwan, and the Middle East. TECO brings deep experience in industrial electromechanical systems and energy technologies, while Foxconn contributes its leadership in AI server manufacturing, often powering Nvidia and Apple hardware.
The companies are expected to reveal more details at a joint press conference scheduled for July 30, 2025, following a temporary suspension of trading due to the announcement. Analysts believe this marks a strategic pivot for Foxconn, leveraging decades of electronics expertise to become a prominent builder of AI-ready data center infrastructure.
The deal aligns with booming global investment in AI data centers, estimated to surpass US $1 trillion in the coming years. It also supports Apple’s ambitions to expand its AI ecosystem—potentially tapping Foxconn’s new capabilities to power future infrastructure needs.
