Foxconn and Nvidia have announced a significant deepening of their strategic partnership, targeting the rapidly expanding domains of smart cities, intelligent electric vehicles (EVs), and AI-powered manufacturing. The collaboration underscores Taiwan’s growing role in the global artificial intelligence (AI) landscape and positions both companies at the forefront of industrial digital transformation.

At Computex 2025 in Taipei, Young Liu, Chairman and CEO of Hon Hai Technology Group (Foxconn), revealed the launch of FoxBrain—Foxconn’s proprietary foundational AI model. Built on open-source frameworks such as Meta’s Llama-3 and -4 and hosted at the company’s Kaohsiung data centre, FoxBrain is designed to accelerate domain-specific AI applications, with initial use cases focused on the automotive sector.

“Mitsubishi will be the first car OEM to utilise our AI reference models,” said Liu, referring to the company’s pilot project with Mitsubishi Motors. The collaboration will see Foxconn’s EV arm, Foxtron, develop an electric vehicle for Mitsubishi, slated for release in Australia and New Zealand in the latter half of 2026. According to Liu, the integration of FoxBrain will allow automotive manufacturers to streamline up to 80% of design and development workflows, enabling faster product delivery and innovation cycles.

To support this growing AI ecosystem, Foxconn has begun construction of a 100MW AI data centre in Taiwan. This infrastructure will be developed in phases, starting with an initial 20MW capacity, and will utilise Nvidia’s H100, GB200, and GB300 chips—critical components for next-generation AI workloads. The facility is envisioned as an “AI factory” capable of powering smart city grids, autonomous vehicle networks, and intelligent manufacturing systems.

“With smart manufacturing, smart EVs, and smart cities, we need an AI factory to power these platforms,” said Liu. He emphasised that Foxconn, with Nvidia’s partnership, aims to build not just infrastructure, but a comprehensive AI ecosystem that positions the firm as a global leader in AI manufacturing.

Nvidia CEO Jensen Huang echoed this sentiment, praising Taiwan’s pivotal role in the global tech ecosystem. “Foxconn is going to be a world-class regional AI cloud provider,” said Huang. He noted that Foxconn is deploying Nvidia technologies across multiple domains: Metropolis for smart cities, Isaac for robotics, Drive for autonomous vehicles, and Omniverse for digital twins.

The two companies also announced joint efforts with the Taiwan government to construct an AI factory supercomputer that will deliver Nvidia’s latest Blackwell infrastructure to support researchers, startups, and large-scale industries, including semiconductor giant Taiwan Semiconductor Manufacturing Company (TSMC).

This move aligns with Nvidia’s broader global expansion. The company plans to open a new office named Constellation in Taipei’s Beitou district and has committed to investing $500 billion in AI infrastructure projects in the United States over the next four years. These developments come amid Nvidia’s ascent to briefly become the world’s most valuable publicly traded company in June 2024, driven by surging demand for AI hardware.

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While geopolitical tensions and tariff pressures have since cooled Nvidia’s market valuation, the deepened alliance with Foxconn signals a resilient strategy focused on regional diversification and ecosystem resilience.

Foxconn, traditionally known for assembling Apple’s iPhones, is rapidly transitioning into a global AI and EV powerhouse. The company is also expanding its footprint beyond Asia with a major server manufacturing facility in Mexico aimed at producing AI servers for Nvidia’s global supply chain.

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