Foxconn Technology Group, the world’s largest electronics contract manufacturer, will form a strategic partnership with industrial motor maker Teco Electric & Machinery to boost development in the AI data centre market, the two Taiwan-based firms said on Wednesday.
The move underscores Foxconn’s efforts to expand beyond its traditional role as Apple’s main iPhone assembler, as it taps opportunities in the artificial intelligence infrastructure market, from supplying AI server racks to data centre businesses.
Under the deal, Foxconn will hold a 10 per cent stake in Teco, which will hold about 0.519 per cent of Foxconn, the firms said.
At a press conference, they said the partnership’s target market extends beyond Taiwan and Asia to the US and the Middle East.
The companies aim to accelerate global data centre development by combining Foxconn’s expertise in servers, cooling systems and uninterruptible power supplies with Teco’s experience in data centre power infrastructure, they said.
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Teco is Taiwan’s top industrial motor maker and ranks among the world’s top five suppliers of small low-voltage and medium- to high-voltage motors. It also produces motors for electric vehicles (EVs).
