Foxconn and TECO Form Alliance for AI Data Center Expansion

July 30, 2025
Foxconn and TECO have announced a strategic alliance to enhance AI data center capabilities through a share exchange agreement.

Hon Hai Precision Industry Co., commonly known as Foxconn, and TECO Electric & Machinery Co. have announced a strategic alliance to bolster their AI data center capabilities. This collaboration, announced in a press release, involves a share exchange agreement aimed at strengthening their positions in the global super-computing market.

The alliance will see TECO acquiring a 0.519% stake in Foxconn, while Foxconn will take a 10% stake in TECO. This no-cash transaction is expected to be completed by the fourth quarter of this year, pending regulatory approvals. The partnership will leverage Foxconn's expertise in electronics manufacturing and AI server production, alongside TECO's strengths in industrial electro-mechanical engineering and green energy innovation.

The companies plan to explore business opportunities in AI data center construction, focusing on standardization and modularization. Their target markets include Taiwan, Asia, the Middle East, and the US, with an emphasis on expanding US manufacturing capabilities. This strategic move aims to provide comprehensive, cost-competitive solutions for global customers, particularly Tier-1 cloud service providers and hyperscalers.

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