Taipei – Taiwanese tech giant Foxconn and OpenAI announced Friday an agreement to design and build AI data centre hardware, the latest in a string of infrastructure deals for the US creator of ChatGPT.
“Demand for critical components in AI infrastructure is already far outpacing supply, and we expect that will only continue,” OpenAI head Sam Altman said Friday by video link at a Foxconn event in Taipei.
The companies will collaborate on hardware to be manufactured at Foxconn’s US facilities.
Invigorated after attending the #Foxconn annual tech day in #Taiwan . Would have liked to see more Indian companies represented here . The combination of AI, Energy & EV’s will change the world . The energy here is electric & the opportunity is endless. Also what struck me was… pic.twitter.com/yP5xogdNEr
— Dr. Sudhir Mehta (@sudhirmehtapune) November 21, 2025
Foxconn and Intrinsic, a subsidiary of Google’s parent Alphabet, also announced Friday a deal to develop and deploy “intelligent robotics solutions across Foxconn facilities in the US”. No headline figure was given.
Foxconn, also known as Hon Hai, is the world’s biggest contract electronics manufacturer but is branching out into electric vehicles as well as AI.
Bloomberg Intelligence analyst Steven Tseng said the Taiwanese company has been expanding capacity in the United States as a major supplier of AI servers and related networking gear.
A formal partnership with OpenAI is “a strong validation that Foxconn is now firmly among the leaders in AI infrastructure build-out”, he told AFP.
The risk of a potential invasion of democratic Taiwan by China means many AI server companies prefer production in the United States, despite higher costs, Tseng said.
“Still, Hon Hai’s shipment scale, vertical integration, and experience in server business should help it manage the margin impact effectively.”
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Source: AFP
