Foxconn and Intel team up to build next-gen AI systems

The companies will explore work on custom chips and system integration solutions

Published Thu, Jun 4, 2026 · 03:48 PM

Foxconn said that the partnership would combine Intel’s chip technology with Foxconn’s manufacturing and system-building expertise. PHOTO: REUTERS

[TAIPEI] Foxconn said on Thursday (Jun 4) it will work with US chipmaker Intel to jointly develop and deploy next-generation AI infrastructure and intelligent computing platforms in a move to capture booming demand for AI computing systems.

Taiwan’s Foxconn, the world’s largest contract electronics manufacturer, said in a statement that the partnership would combine Intel’s chip technology with Foxconn’s manufacturing and system-building expertise.

The companies plan to work on equipment used in AI data centres, including server racks powered by Intel Xeon processors and AI accelerator chips. They will also focus on high-speed interconnect technologies, cooling designs and energy efficiency solutions in AI systems.

Foxconn and Intel also aim to develop AI systems for use outside traditional data centres, including in factories, smart cities and robots.

“Our collaboration with Intel will combine the strengths of both companies across computing platforms, system integration, and global supply chain capabilities,” Foxconn chairman and CEO Young Liu said in the statement.

The companies also said they would explore work on custom chips and system integration solutions.

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Foxconn, formally called Hon Hai Precision Industry, in April reported a 30 per cent on-year jump in first-quarter revenue.

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Intel is among the 10 most expensive stocks in the S&P 500 and the priciest chip stock in the market.

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Apple prefers to have at least two suppliers for any major component, giving it leverage in pricing negotiations and protection from supplier disruptions.

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Intel has been trying to win back its technological edge after suffering from market share losses for its computer chips for years.

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Besides its investment in Intel, the Trump administration has announced more than a dozen other deals to bolster critical industries, including rare earths, steelmaking and nuclear power.

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Intel expects revenue of between US$13.8 billion and $14.8 billion, compared with an estimate of US$13.07 billion.

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Intel CEO Tan Lip Bu has said that the company would exit the chip manufacturing business altogether if it failed to secure an external customer.

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Foxconn and Intel did not give details on the financial value of the collaboration, name any customers or offer a launch timeline. REUTERS

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