TLDRs;
- Foxconn is reportedly in talks with OpenAI to co-develop advanced AI data centers.
- The collaboration could complement OpenAI’s new multi-cloud strategy beyond Microsoft Azure.
- Microsoft’s long-term deal with OpenAI may influence any Foxconn partnership structure.
- Taiwan’s data center and AI infrastructure sector is booming, attracting energy and cloud vendors.
Hon Hai Precision Industry, better known globally as Foxconn, is deepening its footprint in artificial intelligence.
According to company chairman Young Liu, the electronics manufacturing giant is in discussions with OpenAI about a potential collaboration on next-generation data centers.
Details about the partnership are expected to be disclosed during Hon Hai Tech Day on November 21, 2025, where Foxconn typically showcases its emerging technology and industrial roadmap. The move underscores the company’s growing commitment to becoming a critical player in the global AI hardware and infrastructure supply chain.
Foxconn’s discussions with OpenAI arrive at a time when AI workloads are accelerating, demanding more compute power and robust networking capacity. Liu noted that Foxconn has already partnered with North American cloud service providers and Nvidia to construct a high-speed supercomputer, marking Foxconn as Taiwan’s first Nvidia cloud partner.
Microsoft’s Shadow Over the Deal
While the potential collaboration between Foxconn and OpenAI marks a new frontier, it must navigate the complex web of Microsoft’s existing agreement with OpenAI. Microsoft currently maintains exclusive access to OpenAI’s APIs and intellectual property until 2030, and retains the first right of refusal for new cloud infrastructure that OpenAI develops.
This means any new Foxconn–OpenAI data center infrastructure could effectively coexist with or complement Microsoft’s Azure network, rather than compete with it. However, OpenAI’s gradual pivot toward a multi-cloud architecture, which began in early 2025 through its Stargate initiative with SoftBank and Oracle, opens new flexibility.
Under this multi-cloud plan, OpenAI seeks to spread its computational load beyond Azure to reduce dependency on a single provider, an approach that could allow Foxconn to handle non-Azure workloads in future deployments.
Taiwan’s AI Infrastructure Boom
Foxconn’s pursuit of AI infrastructure aligns with a broader national trend in Taiwan, where investments in AI, semiconductors, and data centers are surging. The company reported a 300% quarter-over-quarter increase in AI server rack shipments, and aims to spend up to $1.4 billion on AI data center equipment by the end of 2026.
Meanwhile, Microsoft’s Azure Taiwan region is expected to include three to four large data centers, further boosting the island’s profile as an AI computing hub in Asia. This expansion has fueled demand for engineering, energy, and construction services, with local EPC contractors and power solution firms gearing up for megawatt-scale infrastructure projects.
Taiwan’s government has allocated hundreds of billions of New Taiwan dollars toward AI infrastructure initiatives starting in 2026, funds that will likely modernize the country’s power grids, energy systems, and data center capacity.
Local Suppliers Seize the Opportunity
The growing AI infrastructure race is also creating opportunities for Taiwanese suppliers specializing in power efficiency and cooling technologies.
Delta Electronics, a global leader in power and thermal management, recently unveiled its AI Data Center Microgrid Solution, featuring 98.5% efficient solid-state transformers designed for high-density computing loads.
These advancements signal a shift toward more sustainable and power-resilient data centers, especially as AI computing demands become increasingly energy-intensive. With Foxconn pushing forward in AI hardware manufacturing, semiconductors, and now data center operations, the company could position itself as a critical enabler of AI infrastructure in Asia, and a valuable ally for OpenAI as it scales globally.
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