Foxconn and Intel team up to build AI infrastructure

Foxconn and Intel have joined forces to chase the next phase of artificial intelligence hardware, signing up to develop and deploy next-generation AI infrastructure and intelligent computing platforms that stretch from data centers into factories, smart cities and robots. The move puts Hon Hai Technology Group, the world’s largest electronics manufacturer, deeper into the center of the AI buildout while giving Intel another avenue to keep its chips relevant in a market still dominated by Nvidia-linked systems.

The companies said their first focus is equipment for AI data centers, including server racks built around Intel Xeon processors and AI accelerator chips. They also plan to work on high-speed interconnects, cooling designs and energy-efficiency solutions, all of which have become crucial as AI systems demand more power, more networking capacity and more expensive operations. Foxconn said the collaboration is meant to accelerate both development and deployment, not just design.

Young Liu, Foxconn’s chairman and chief executive, said the partnership would combine the strengths of both companies across computing platforms, system integration and global supply-chain capabilities. The companies did not disclose a financial value, identify customers or give a launch timeline, leaving the immediate impact strategic rather than transactional. That is consistent with the broader direction of the AI industry, where control over racks, chips, cooling and manufacturing is becoming as important as the software layer that runs on top.

The announcement also fits into a wider campaign by Foxconn to expand its AI footprint across the supply chain. On June 4, Liu said he had recently met SK Group chairman Chey Tae-won in Taipei to discuss possible cooperation on AI servers, AI data centers and energy solutions. In November 2025, Foxconn and OpenAI announced a separate collaboration to design and manufacture next-generation AI infrastructure hardware in the United States, with OpenAI gaining early access to evaluate systems but no purchase commitments or financial obligations attached at the start.

For Foxconn, the Intel tie-up builds on a company that reported 2025 revenue of TWD 8.1 trillion, about USD 260 billion, and has been investing in artificial intelligence, semiconductors and next-generation communications technology. For Intel, it comes as the company tries to show it can sell more than standalone chips. At Computex 2026, Intel laid out a rackscale AI infrastructure strategy built around Xeon processors and SambaNova SN-50 reconfigurable dataflow units, and in April it announced a multiyear collaboration with Google on AI and cloud infrastructure. The Foxconn deal signals that both companies want a larger role in the industrial politics of AI, where the winners may be the firms that control the hardware stack from silicon to system.