FILE PHOTO: A Foxconn electric two-wheeler powertrain system is displayed at Foxconn’s annual tech day in Taipei, Taiwan October 8, 2024. REUTERS/Ann Wang/File Photo
TAIPEI (Reuters) -Taiwan’s Foxconn said its board of directors has approved an investment plan to procure equipment for a AI compute cluster and a supercomputing centre, that will allow it to spend up to NT$42 billion ($1.37 billion).
The investment will be made from December 2025 to December 2026 using its own funds, the company said in a filing published late on Monday.
Foxconn said the purpose of the plan is to "expand the cloud compute service platform and accelerate the development of the Group's three smart platforms.” It did not elaborate or say where the investment would be made.
A person familiar with the matter said the investment will be made in Taiwan. Foxconn did not immediately respond to a request for comment.
The world’s largest contract electronics maker, also known asHon Hai Precision Industry Co Ltd, has been stepping up its investments in artificial intelligence and cloud infrastructure as it seeks new growth drivers beyond smartphones and traditional electronics manufacturing.
In May, the company announced it would build an artificial intelligence centre with Nvidia in Taiwan targeted to have 100 megawatts of power.
In August, the company said it plans to manufacture data centre equipment with Japan's SoftBank at the Taiwanese firm's former electric vehicle factory in Ohio, part of the Stargate project to advance U.S. artificial intelligence infrastructure.
(Reporting by Wen-Yee Lee; Editing by Stephen Coates)
