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Friday
21 Nov 2025

Foxconn, OpenAI Partner on AI Hardware Manufacturing

21 Nov 2025  by Reuters   
Foxconn has entered into a cooperation agreement with U.S.-based OpenAI to jointly design and develop data center racks, related components, and artificial intelligence infrastructure hardware, the Taiwanese company announced on Thursday.


A Foxconn high energy density solid-state lithium metal battery is displayed at Foxconn?s annual tech day in Taipei, Taiwan October 8, 2024.

Under the agreement, Foxconn will engineer and manufacture specialized equipment tailored to the requirements of large-scale AI systems. Although the initial arrangement carries no binding purchase obligations, OpenAI will gain priority access to test the products and holds an option for future procurement.

The partnership provides Foxconn, the world’s leading contract electronics manufacturer, with direct insight into the evolving computing demands of major AI developers. This collaboration will help shape next-generation hardware optimized for advanced large language models.

Foxconn plans to produce the data center components, including power systems, cabling, and networking equipment, at its facilities in the United States. Manufacturing in the U.S. supports localized supply chains for North American customers.

The initiative aligns with strong market demand for AI infrastructure. Major technology companies continue to invest heavily in computing capacity, driving growth across the sector.

OpenAI has been expanding its role in hardware development. The company is already working with Broadcom on custom chip design as part of a broader strategy to build integrated AI systems.

Separately on Thursday, Foxconn revealed another partnership, this time establishing a joint venture with Intrinsic, an Alphabet subsidiary, to advance general-purpose robotics and automation solutions for manufacturing environments.

The robotics collaboration will initially focus on assembly, quality inspection, machine tending, and logistics processes across various production lines. The venture aims to enhance efficiency and accelerate manufacturing operations through intelligent automation.

Both announcements highlight Foxconn’s strategic positioning in high-growth technology segments, combining its manufacturing expertise with leading innovators in artificial intelligence and robotics to meet rising global demand for advanced infrastructure and automation systems.

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