Foxconn used its annual Hon Hai Tech Day in Taiwan to offer one of the clearest signals yet that the company is accelerating its transformation from a traditional electronics assembler into a global force in artificial intelligence infrastructure. With new partnerships announced alongside OpenAI, Alphabet’s Intrinsic, and Nvidia, Foxconn underscored a strategic shift aimed at securing its position at the center of the AI hardware boom — a market experiencing explosive demand but also questions about sustainability.

A Strategic Push Beyond Consumer Electronics

Long known as the world’s largest assembler of Apple’s iPhones, Foxconn is now positioning itself as a critical pillar of the AI supply chain. The transition has accelerated rapidly: its server and cloud-compute division overtook smartphones as the company’s largest revenue contributor earlier this year, helping deliver record quarterly profits. Chairman Young Liu emphasized that Foxconn’s identity is evolving with market needs, noting that AI infrastructure — not consumer devices — is increasingly shaping the company’s investment priorities.

This shift reflects a broader industry trend. As AI models become more advanced and resource-intensive, demand has surged for high-performance servers, power-efficient components, and specialized manufacturing capabilities. Foxconn, with decades of expertise in scaling hardware production, appears intent on becoming indispensable to every layer of the AI ecosystem.

OpenAI Partnership Marks a Milestone in AI Hardware Collaboration

Foxconn’s newly announced partnership with OpenAI was one of the most closely watched developments. Through the collaboration, both companies will share insights on future hardware requirements, enabling Foxconn to design, prototype, and eventually manufacture next-generation AI systems. According to OpenAI CEO Sam Altman, who appeared via video at the event, the partnership aims to push innovation at a time when the AI sector is evolving at unprecedented speed.

The collaboration will be centered on server infrastructure — a segment Foxconn has invested heavily in as demand for AI training and inference capacity continues to soar. By aligning itself with OpenAI, one of the most influential drivers of the modern AI era, Foxconn is securing a front-row seat to emerging requirements that could shape global hardware supply chains for years to come.

Deepening Ties with Nvidia and Alphabet’s Intrinsic

Beyond OpenAI, Foxconn highlighted expanding work with Nvidia, showcasing compute trays built for the chipmaker’s latest Blackwell architecture. Nvidia executives in attendance stressed that the partnership aims to accelerate deployment of advanced AI systems as demand continues to outstrip supply. With Nvidia projecting sustained strength in AI-related orders, Foxconn’s manufacturing capacity provides a crucial source of leverage in reducing bottlenecks.

Foxconn also announced a new collaboration with Alphabet’s Intrinsic to build so-called “AI factories,” facilities designed to integrate robotics, automation, and intelligent software. The initiative further broadens Foxconn’s ambitions, signaling a drive to become not just a supplier, but an orchestrator of next-generation industrial AI systems.

A Hedge Against AI Market Volatility

Despite ongoing debate about a potential AI bubble, Liu expressed confidence that Foxconn is structurally insulated from market downturns. His argument is simple: regardless of which model or platform dominates the next wave of innovation, every AI system requires hardware — and Foxconn builds it. The company’s strategic diversification positions it to benefit from the growth of AI workloads even if individual model providers stumble.