Foxconn chairman Young Liu revealed ongoing discussions with OpenAI CEO Sam Altman about a new partnership, highlighting Foxconn's expanding role in AI hardware amid steady growth forecasts.
- Foxconn and OpenAI plan a new partnership, details pending finalization.
- AI hardware now generates over half of Foxconn’s revenue.
- Foxconn disputes AI industry bubble concerns, expects strong growth.
What happened
At Foxconn’s annual technology event in Taipei, chairman Young Liu confirmed that the company is working on a new partnership agreement with OpenAI. Liu met with OpenAI CEO Sam Altman earlier the same day but did not disclose specific details about the ongoing discussions. Foxconn promised to announce the deal once all terms have been finalized.
This potential new agreement would build on an existing collaboration between Foxconn and OpenAI announced in November 2025, which focused on designing multiple generations of AI data center racks. Foxconn also manufactures AI server components in the US and supplies technology hardware for Nvidia, a key player in AI server infrastructure.
Why it matters
AI hardware has become a critical business segment for Foxconn, with its cloud and networking division—where AI servers reside—accounting for 51% of company revenue in the second quarter. This marks a major milestone as the first time AI-related products have made up more than half of their total income.
Foxconn’s expanding AI infrastructure role is significant amid broader market concerns about an AI investment bubble. Chairman Liu pushed back against these fears, expressing confidence in continued double-digit growth and highlighting Foxconn’s plans to scale up its Houston manufacturing facilities to meet rising hardware demand.
What to watch next
Investors and industry watchers will be focused on Foxconn’s formal announcement regarding the new collaboration with OpenAI, looking for insights on the scope of the partnership and potential commercial commitments. The partnership could influence supply chains and AI infrastructure availability.
Foxconn’s ongoing expansion in AI hardware production, including its cooperation with other partners like Schneider Electric, will be important to monitor. This expansion reflects the company’s strategic commitment to serving the rapidly growing AI data center market and could impact competitive dynamics in global AI hardware supply.