Overview

• Foxconn announced on July 30 that it is acquiring a 10% stake in TECO Electric & Machinery through a share exchange.
• The strategic alliance aims to deliver end-to-end AI data center solutions by integrating low-carbon smart factories, energy services, co-design, server rack manufacturing and infrastructure construction.
• Foxconn leverages its existing collaboration with Nvidia and a recent forecast that AI server revenue doubled in the second quarter to diversify beyond consumer electronics.
• TECO brings experience from its evolution from car engine manufacturing into electric vehicles, energy storage and data center construction.
• The combined effort will target markets in Taiwan, other parts of Asia, the Middle East and the United States to capture a share of projected $1 trillion data center spending.