Also known as Hon Hai Precision Industry, the Taipei-based company said in a stock exchange filing on Monday that the investment will be made from December 2025 to December 2026 using its own funds. Foxconn added that the investment is aimed at expanding its cloud compute service platform and accelerate the development of its “three smart platforms,” namely smart manufacturing, smart electric vehicles and smart cities.

The announcement comes on the heels of Foxconn’s announcement in May to build a 100-megawatt AI data center with Nvidia in Taiwan. Foxconn will use the infrastructure to improve the efficiency of its factories, develop advanced driver-assistance systems for its EVs and optimize connected transportation systems in Taiwan.

Foxconn, the world’s largest contract electronics maker by sales, has successfully diversified its revenue from assembling iPhones for Apple to producing AI servers. In the second quarter, Foxconn for the first time saw its revenue from making AI servers and other cloud and networking products surpass that of smart consumer electronics. The AI server business segment contributed to 41% of Foxconn’s NT$1.8 trillion revenue in the three months ended June, while the smart consumer electronics division accounted for 35%. The company claims it holds more than 40% of the world’s AI server market.

In August, Foxconn said it sold an EV factory in Ohio to Japan’s investment giant SoftBank to manufacture AI servers. The Taiwanese company will continue to operate the plant, which will produce the equipment needed for Stargate, the $500 billion AI data center venture backed by SoftBank, AI poster child OpenAI, cloud giant Oracle and Abu Dhabi’s state-backed fund MGX.

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