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Foxconn is exploring a new collaboration with OpenAI as growing demand for artificial intelligence (AI) infrastructure reshapes the global technology manufacturing industry. The proposed partnership could deepen the relationship between the Taiwanese electronics manufacturer and the
developer of ChatGPT, although the details have yet to be finalised.
Foxconn Chairman Young Liu confirmed the discussions on October 30 after meeting OpenAI Chief Executive Sam Altman earlier in the day.
Speaking to reporters at the company's annual Hon Hai Tech Day in Taipei, Liu said an announcement would be made once the details were confirmed. However, he did not disclose the proposed collaboration's scope, financial terms or timeline.
The discussions build on an existing agreement announced in November 2025, under which the two companies agreed to collaborate on designing and engineering AI data-centre racks and related infrastructure.
The partnership covers essential equipment, including cabling, networking, cooling and power systems. It also includes preparations for manufacturing at Foxconn's facilities in the United States. However, the original agreement did not involve purchase commitments or financial obligations, although OpenAI received an option to evaluate and potentially purchase the systems.
The potential expansion comes as AI servers become an increasingly important contributor to Foxconn's business. Formally known as Hon Hai Precision Industry, the company is Nvidia's largest AI server manufacturer and operates six factory buildings in Houston, Texas, dedicated to AI server production.
In August, Foxconn reported that its cloud and networking products segment, which includes AI servers, accounted for 51 per cent of its second-quarter revenue, crossing the halfway mark for the first time.
Addressing concerns over the sustainability of heavy investments in AI infrastructure, Liu rejected suggestions that the industry was experiencing a speculative bubble. He also forecast double-digit growth for Foxconn in2027, signalling confidence in continued demand for AI-related hardware.
An expanded agreement could further strengthen Foxconn's position in the global AI hardware supply chain. However, the commercial impact of the proposed collaboration will become clearer once both companies disclose its scope, terms and implementation plans.
Foxconn Chairman Young Liu confirmed the discussions on October 30 after meeting OpenAI Chief Executive Sam Altman earlier in the day.
Speaking to reporters at the company's annual Hon Hai Tech Day in Taipei, Liu said an announcement would be made once the details were confirmed. However, he did not disclose the proposed collaboration's scope, financial terms or timeline.
The discussions build on an existing agreement announced in November 2025, under which the two companies agreed to collaborate on designing and engineering AI data-centre racks and related infrastructure.
The partnership covers essential equipment, including cabling, networking, cooling and power systems. It also includes preparations for manufacturing at Foxconn's facilities in the United States. However, the original agreement did not involve purchase commitments or financial obligations, although OpenAI received an option to evaluate and potentially purchase the systems.
The potential expansion comes as AI servers become an increasingly important contributor to Foxconn's business. Formally known as Hon Hai Precision Industry, the company is Nvidia's largest AI server manufacturer and operates six factory buildings in Houston, Texas, dedicated to AI server production.
In August, Foxconn reported that its cloud and networking products segment, which includes AI servers, accounted for 51 per cent of its second-quarter revenue, crossing the halfway mark for the first time.
Addressing concerns over the sustainability of heavy investments in AI infrastructure, Liu rejected suggestions that the industry was experiencing a speculative bubble. He also forecast double-digit growth for Foxconn in2027, signalling confidence in continued demand for AI-related hardware.
An expanded agreement could further strengthen Foxconn's position in the global AI hardware supply chain. However, the commercial impact of the proposed collaboration will become clearer once both companies disclose its scope, terms and implementation plans.
