Foxconn strengthens its AI data centre footprint with TECO deal, targeting growth in energy, servers, and infrastructure.
Foxconn buys 10% stake on a Taiwanese company TECO, to expand its business footprint from electronics assembly to
Foxconn has acquired a 10% stake in a Taiwan based TECO Electric & Machinery Co., via a share-swap deal. The move is aimed at strengthening Foxconn’s expansion into the global AI data centre infrastructure market.
The strategic alliance enables Foxconn to enhance its capabilities beyond server assembly, adding TECO’s established footprint in energy storage systems, motor manufacturing, industrial automation, and power grid infrastructure.
Founded in 1956, TECO has evolved from a traditional electric motor manufacturer to a provider of low-carbon factory systems, EV drive-train components, and energy-efficient power equipment. It also operates in the renewable energy space, including smart grids and backup storage solutions, key components in data centre power continuity.
Foxconn currently produces AI-optimised server racks and works closely with clients such as Nvidia. With hyperscalers and cloud service providers increasing capital expenditure on AI infrastructure, the global data centre market is projected to exceed $1 trillion in the next few years.
The partnership is structured to create a one-stop, vertically integrated offering: from co-design and manufacturing of server racks to full physical infrastructure, including power, cooling, and automation.
This complements Foxconn’s long-term strategy to reduce dependence on smartphone assembly, and expand its business in different sectors, as seen in its earlier ventures into EV assembly and semiconductor packaging.
The two companies aim to target markets across Taiwan, Asia, the US, and the Middle East, with plans to scale up their manufacturing footprint in the US as part of growing supply chain localisation efforts.
This partnership positions Foxconn to capture a larger share of end-to-end data centre CAPEX, while leveraging TECO’s operational expertise in managing power systems essential to AI-scale computing facilities.
