Taiwanese electronics giant Foxconn $2354.TW, the world’s largest contract electronics manufacturer, announced on Tuesday plans to build a phased artificial intelligence data center with a capacity of 100 megawatts. This initiative follows closely after Nvidia’s $NVDA recent unveiling of a massive AI supercomputer project on the island, developed in partnership with Foxconn, semiconductor leader TSMC $2330.TW, and the Taiwanese government. The announcement was made at the annual Computex trade show in Taipei, underscoring Taiwan’s growing prominence in the global AI and semiconductor ecosystem.
Foxconn’s chairman, Yang Liu, emphasized that the AI data center would be constructed in stages, reflecting both the complexity of the infrastructure and the expanding demand for AI compute capacity. The 100 MW power capacity signals a substantial investment in data processing and storage capabilities, essential for next-generation AI workloads including machine learning model training and deployment.
This project aligns with Nvidia’s strategy to establish localized AI infrastructure hubs, leveraging Foxconn’s manufacturing scale and TSMC’s cutting-edge semiconductor fabrication expertise. Taiwan’s government involvement highlights the strategic importance of fostering a domestic AI ecosystem that can compete internationally.
Given the rising global demand for AI-driven applications and the exponential growth of data, the collaboration positions Taiwan as a critical hub for AI hardware development, particularly benefiting from the synergies between hardware manufacturing and AI software innovation.
Foxconn to build a phased AI data center with 100 MW capacity
Collaboration involves Nvidia, Foxconn, TSMC, and the Taiwanese government
Announcement made at Computex trade show in Taipei
Project supports AI supercomputer development and next-gen AI workloads
Taiwan aims to strengthen its position in the global AI and semiconductor markets
Market experts view the partnership between Foxconn and Nvidia as a significant step in scaling AI infrastructure outside traditional tech hubs like Silicon Valley. The integration of semiconductor manufacturing, contract electronics (Foxconn), and AI hardware/software (Nvidia) creates a powerful ecosystem driving innovation and reducing supply chain vulnerabilities.
Investor sentiment toward Nvidia remains strong due to its expanding footprint in AI hardware. Foxconn’s diversification into AI data centers complements its traditional manufacturing portfolio, offering new growth avenues in the fast-evolving tech sector.
Taiwan’s government participation not only accelerates project timelines but also ensures alignment with national technology priorities, including AI talent development and digital infrastructure upgrades.
The AI data center will be built in multiple phases, enabling scalable capacity growth.
Nvidia’s role extends beyond chip design to AI supercomputing and infrastructure deployment.
Foxconn leverages its manufacturing scale to support AI hardware assembly and integration.
TSMC’s semiconductor leadership is crucial for advanced AI chip production.
Government support underscores Taiwan’s strategic focus on AI and semiconductor industries.
The Foxconn-Nvidia AI data center initiative marks a major advancement in Taiwan’s AI and semiconductor landscape, setting the stage for enhanced technological self-reliance and innovation leadership. By combining manufacturing prowess, semiconductor expertise, and AI research capabilities, the project exemplifies how integrated industry partnerships can accelerate the development of AI infrastructure.
This development also signals to global markets that Taiwan is a key node in the supply chain for advanced AI hardware, with significant implications for regional competitiveness and technology security. The ongoing investment in large-scale AI data centers supports broader digital transformation trends and reinforces Taiwan’s strategic role in the evolving global tech ecosystem.
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