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Foxconn Collaborating with TECO to Build Data Centers

Catwell

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Foxconn sign from their Wisconsin facility. (via Foxconn)

When Foxconn moves, so does the market. Foxconn, a major Apple manufacturer, is setting foot in the AI world by collaborating with TECO to construct all-in-one next-gen data centers. Foxconn is acquiring a 10% stake in TECO Electric & Machinery, shifting to AI-driven data center infrastructure. The deal is another move in the Taiwanese firm's transition beyond consumer electronics. 

Foxconn's goal is to dominate the ever-growing AI sector. The company's recent moves point toward long-term investments in the infrastructure that powers the future of computing. Foxconn builds server racks optimized for AI workloads and serves as a major partner for NVIDIA. TECO focuses on data center construction, energy storage, and electric vehicles. 

“Time-to-market is key in the global super-computing race. Modular design is gaining popularity. As AI data centers grow in size and demand ramps higher, teaming up with TECO means both companies are able to level up and rapidly deliver comprehensive, vertically-integrated solutions to our customers – the Tier-1 CSPs and hyperscalers,” Foxconn Chairman Young Liu said.

Foxconn and TECO are working toward providing an all-in-one solution to construct data centers in the United States, Taiwan, and the Middle East. The collaboration also extends to low-carbon smart factory initiatives and energy solutions. 

“Changing global dynamics are creating new opportunities for business and cooperation. The strategic partnership extends the two companies’ cooperation in the fields of low-carbon smart factories and energy services, toward being a one-stop solution for data centers going forward,” TECO Chairman Morris Li said.

Apple has the motivation to align with Foxconn's AI shift. Now that it requires expansive server infrastructure for supporting future AI ambitions, Apple could rely on its partner to meet that demand. Considering their close ties, Foxconn has a strong chance of obtaining a significant share of Apple's AI infrastructure needs. 

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  • Yeah... Foxconn made huge promises in order to build a facility here in Wisconsin.  They got a lot of taxes breaks, etc.  They built the building.  They have delivered on about 10% of the initial pitch. Frowning2  I wouldn't pour my life's savings into this venture.  They seem easily distracted by the next bright, shiny thing.