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Foxconn and Intel team up to build next-gen AI systems

Daniel Nenni

Daniel Nenni

Founder
Staff member
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TAIPEI, June 4 (Reuters) - Foxconn said on Thursday it will work with U.S. chipmaker Intel to jointly develop and deploy next-generation AI ‌infrastructure and intelligent computing platforms in a move to capture booming demand for AI computing systems.

Taiwan's Foxconn, the world's largest contract electronics manufacturer, said in a statement that the partnership would combine Intel's chip ⁠technology with Foxconn's manufacturing and system-building expertise.

The companies plan to work on equipment used in AI data centres, including server racks powered by Intel Xeon processors and AI accelerator chips. They will also focus on high-speed interconnect technologies, cooling designs and energy efficiency solutions in AI systems.

Foxconn and Intel also aim to develop AI ‌systems ⁠for use outside traditional data centres, including in factories, smart cities and robots.

"Our collaboration with Intel will combine the strengths of both companies across computing platforms, system integration, and ⁠global supply chain capabilities," Foxconn Chairman and CEO Young Liu said in the statement.

The companies also said they would explore ⁠work on custom chips and system integration solutions.

Foxconn and Intel did not give details on the financial ⁠value of the collaboration, name any customers or offer a launch timeline.

 
MKWVentures said:
I thought Intel always worked with EMS and ODMs on this? I would be interested in what is new or different in this project
Click to expand...
Maybe combined Intel / SambaNova hardware ?

"The companies plan to work on equipment used in AI data centres, including server racks powered by Intel Xeon processors and AI accelerator chips. They will also focus on high-speed interconnect technologies, cooling designs and energy efficiency solutions in AI systems."
 
MKWVentures said:
I thought Intel always worked with EMS and ODMs on this? I would be interested in what is new or different in this project
Click to expand...

Intel is trying to catch up with Nvidia and its massive ecosystem. Intel did not fully recognize, until Li-Bu Tan arrived, that the company cannot do everything alone in today’s fast changing and highly complex computing environment. For the past several years, the supply chain has followed Nvidia, not Intel. I feel that under former CEO Pat Gelsinger, Intel even burned bridges with some critical supply chain partners.

At Computex 2026 in Taipei, Li‑Bu Tan announced that Intel will partner with SambaNova to deliver enterprise AI infrastructure and the Perplexity Computer (Perplexity’s autonomous agent system). Intel needs the supply chain to build these products at a time when the entire ecosystem is working for Nvidia.

With the rapid advancement of AI and high performance computing, processor companies like Nvidia, Intel, and AMD must work closely with the supply chain to define standards and protocols, and to deliver the right hardware/software integration and solutions. Nvidia’s Grace Hopper and Vera Rubin platforms are examples of how collaboration is to delivering complex systems on time and capturing market opportunities.

The supply chain is complicated, diversified, and requires enormous resources, research, investment, and long term commitment. From rack systems, power systems, cooling, electronic components, PCB boards, semiconductor chips, memory, and storage to networking, the list goes on. Without deep collaboration across the supply chain, Nvidia simply could not deliver AI systems on a fast, yearly cadence.

Take Foxconn as an example. Foxconn has worked with Intel for many years, but it is questionable whether it treats Intel and Nvidia equally today. In 2025, Foxconn generated US$252.8 billion in revenue with US$5.92 billion in net profit, compared with Intel’s US$52.85 billion in revenue and a net loss of US$267 million. Foxconn is five times bigger than Intel by revenue. The scale difference is enormous now.

Before the 2026 Computex Taipei opened last week, Nvidia CEO Jensen Huang hosted a “Trillion Dollar Dinner” for Nvidia’s supply chain partners in Taiwan. Some estimated that the participants represented a combined market value of about US$3 trillion, not including Nvidia’s own market cap.

This was the second “Trillion Dollar Dinner” Jensen Huang held in 2026 in Taiwan and the fifth in recent years. He clearly understands the importance of supply chain relationships and how they support Nvidia’s US$5 trillion valuation.



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