TAIPEI (Taiwan News) – Foxconn Technology Group and Teco Electric and Machinery Co. announced a strategic alliance Wednesday to develop AI data centers on an international scale.
If the deal receives government approval in the fourth quarter, Foxconn will become Teco’s second-largest shareholder with a 10% stake. The machinery maker will have a stake of 0.519% in the world’s largest contract electronics maker, the Liberty Times reported.
The new partnership aims to expand production in the US market, as both companies already manage plants there. Teco Chair Morris Li (利明献) said the company’s Teco-Westinghouse factory in Texas is well-known as a motor manufacturer. In combination with Foxconn’s operations, the alliance would expand its US production and rearrange global supply lines, he said.
The joint project would seek business opportunities in Taiwan, Asia, the US, and the Middle East, Teco said. Foxconn’s strength relies on servers, cooling systems, and uninterruptible power supplies, while Teco focuses on data center power infrastructure, including generators.
Teco recently won two contracts for data center projects in Malaysia. The contracts involved server rooms, fiber-optic communication systems, and work for hyperscale data centers.
