Foxconn Technology (OTCPK:FXCOF) said its board approved an investment plan to procure equipment for an AI compute cluster and a supercomputing center, which will allow it to spend up to NT$42B (about $1.37B), Reuters reported.
Shares of Foxconn rose about 2% in Taiwan on Tuesday.
The investment will be made from December 2025 to December 2026 using its own funds, said the company in a filing, the report added.
Foxconn said the purpose of the plan is to “expand the cloud compute service platform and accelerate the development of the Group’s three smart platforms.”
Foxconn — which is formally known as Hon Hai Precision (OTCPK:HNHAF) (OTCPK:HNHPF) — did not disclose or say where the investment would be made.
A person with knowledge of the matter said the investment will be made in Taiwan, according to the report.
Foxconn did not immediately respond to a request for comment from Seeking Alpha.
The company has been boosting its efforts for investment in AI and cloud infrastructure. In August, Foxconn said it plans to make data center equipment with SoftBank Group (OTCPK:SFTBY) (OTCPK:SFTBF) at the Taiwan-based company’s former electric vehicle factory in Ohio, part of the Stargate project to advance U.S. AI infrastructure.
In May, Foxconn noted that it would build an AI center with Nvidia (NVDA) in Taiwan targeted to have 100 megawatts of power.
Foxconn is a major contract manufacturer for Apple (AAPL) and Nvidia (NVDA).