The iPhone Foxconn manufacturer creates a big game for the AI data center

Foxconn Wednesday stated that he takes such a share in Teco Electric & Machinery Co. It looks like to remake your efforts to become a key player in the construction of artificial intelligence data centers.

The Taiwanese firm, officially known as Hon Hai, seeks to repeat the success in consumer electronics in the world II. This is a play that can unlock Foxconn access to potential costs per dollars at the data center in the coming years, according to the CONTROPPOINT study, and will produce the Taiwanese giant against companies such as ABB, Siemens and Mitsubishi Electric.

Foxconn will take 10% Teco shares as a result of shares. Teco began his life manufacturers for vehicles, but has since spread to areas such as electric cars, storage and construction of data centers. Meanwhile, Foxconn, which collects the iPhone Apple and is a key partner for NvidiaProduces server shelves designed for AI load.

Both companies are now being combined to merge their experience to create a unilateral store effectively for those who want to create AI data center.

“The strategic partnership expands the cooperation of two companies in smart factories and low-carbon energy services to become the only solution for data processing centers,” said TECO Chairman Morris Lee.

AI server collection has become a major attention because Foxconn looks like to diversify its income beyond consumer electronics. Expected earnings from the AI server doubled in the second quarter of the year, Foxconn is previously forecast. The company also showed readiness to expand new areas, including the assembly of electric cars and even the production of semiconductors.

“Using the AI-Hon HAI infrastructure boom with (a) a strategic union with Teco aimed at expanding and hard integration of server components and a chain of joint design, production to engineering and infrastructure construction services,” said Neil Shah, CNBCC partner.

“Hon Hai seeks to become the only stop for all the needs of the data center.”

The technological giants from Microsoft by Google already posted plans Spend billions of dollars this year Alone at the data center that includes chips and servers – the market that foxconn focuses on.

Foxconn and Teco said they were aimed at Taiwan’s business and other parts of Asia, as well as in the Middle East, and the United States – two companies indicated on their mark in the US and said they plan to “expand US production and rearrange the global supply chain.”

“Full solutions of the data center will give a strong foxconn business impetus, as you need to take a larger piece of common Capex Data (capital costs), which includes servers to physical infrastructure,” said Shah CounterPoint Research.