Foxconn, long known as the manufacturing backbone of Apple’s iPhone production, is undergoing a major transformation. The Taiwanese technology giant is now moving from consumer electronics to the field of artificial intelligence, focusing on building AI servers that power cloud computing, generative AI, and data centers. The strategic shift comes in response to the growing global demand for AI infrastructure.
For years, Foxconn was synonymous with Apple’s supply chain, producing millions of iPhones annually at its large factory floors in China and India. However, the rising need for high-performance computing has led the company to retool its operations to manufacture advanced servers. This marks a significant departure from its traditional role as an assembler of consumer technology, positioning Foxconn as a key player in enterprise hardware.
Barclays analysts Jiong Shao, Lian Xiu Duan, and Xinyao Song said, “The company has grown from its legacy business of building smartphones or assembling computers for the likes of Apple to being a critical player in not only AI servers but also in emerging new product categories such as EVs and humanoid robots.”
AI servers form the foundation of modern computing, supporting large language models, real-time analytics, and other high-demand applications. These machines require specialised components, including high-speed networking, GPUs, and advanced cooling systems. Foxconn has also partnered with companies such as Nvidia, Supermicro, and Dell to strengthen its AI server capabilities.
This move into AI server production reflects Foxconn’s broader strategy to remain relevant in a fast-changing technology landscape and diversify beyond its historical reliance on consumer electronics.
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