Taipei, Taiwan – Foxconn (2317.TW) announced on Friday that its $1.4 billion supercomputing centre, built in collaboration with Nvidia (NVDA.O), will be operational by the first half of 2026. The project will establish Taiwan’s largest advanced GPU cluster and is set to be Asia’s first GB300 AI data centre, according to Neo Yao, CEO of Foxconn’s new AI and cloud unit, Visonbay.ai.

The 27-megawatt facility will harness Nvidia’s Blackwell GB300 chips to deliver high-performance computing (HPC) capabilities for AI and cloud workloads. The announcement highlights Foxconn’s aggressive expansion beyond its traditional electronics assembly role into AI infrastructure, data centres, and electric vehicles (EVs).

Strategic Importance of the Supercomputing Cluster

Foxconn, the world’s leading iPhone assembler, has increasingly diversified into AI supercomputing and EV manufacturing. The company now manufactures up to 1,000 AI server racks per week, tailored to support AI training and data-intensive workloads. Nvidia’s Alexis Bjorlin emphasized that as GPU technology accelerates, companies may find it more economical to rent compute resources rather than build individual facilities, enabling flexible scaling according to product and business cycles.

Foxconn’s new cluster will serve clients including OpenAI, Uber, and other AI-focused enterprises. The facility underscores Taiwan’s growing role in the global AI supply chain, providing advanced GPU-based computing for AI research, development, and industrial applications.

AI and EV Growth Driving Foxconn’s Expansion

Foxconn Chairman Young Liu revealed that the company plans to invest $2 billion to $3 billion annually in AI technologies. The new supercomputing centre will complement Foxconn’s existing AI infrastructure and provide the backbone for high-performance AI research, catering to cloud computing firms and technology innovators worldwide.

Foxconn also showcased its Model A electric vehicle, developed in collaboration with Japanese engineers. The company plans to establish a presence in Japan to serve local EV customers, with eventual production also slated to take place in Japan. This move positions Foxconn as a significant player in the EV market, leveraging its manufacturing expertise to expand globally.

Foxconn founder Terry Gou and Nvidia product line manager Spencer Huang, son of Nvidia founder Jensen Huang, attended the tech day event in Taipei, highlighting the strategic partnership between the two technology giants.

Outlook and Implications

The Foxconn-Nvidia collaboration reflects the accelerating demand for AI infrastructure, particularly in Asia, where companies are increasingly investing in GPU clusters and supercomputing facilities. Analysts say such mega data centres will play a pivotal role in supporting AI research, cloud computing services, and industrial AI applications, further solidifying Taiwan’s position in the global technology ecosystem.

Foxconn’s capability to produce 1,000 AI racks per week positions it as a crucial supplier in the global AI hardware market, potentially driving revenue growth and establishing Taiwan as a hub for high-performance computing innovation.