TAIPEI (Taiwan News) — Taiwan’s Teco Electric and Machinery is positioning itself to play a central role in energy-saving upgrades and expansion projects across Foxconn’s global operations.
The company will join Foxconn at next week’s Nvidia technology conference to showcase its modular AI data center solutions. Chair Morris Li (利明献) said Thursday that Teco aims to join the supply chain for major data center developers, according to CNA.
Teco expects significant growth this year, led by its energy and AI data center businesses. Revenue from AI data centers is projected to rise severalfold, while the power and energy segment could grow from a high single-digit share in 2025 to more than 30%, supported by scalable, modular designs.
Busway systems, used in data center construction, are expected to drive more than 50% growth in related revenue. Engineering revenue is projected to account for about 70% of total revenue.
Founded in 1956, Teco is one of Taiwan’s oldest electrical machinery manufacturers, specializing in motors, transformers, and heavy electrical equipment. Its products are widely used in industrial automation, energy systems, and air-conditioning applications, according to Sinotrade.
Historically viewed as stable but low-growth, Teco’s prospects shifted in July with a strategic alliance with Foxconn via a share swap. The partnership targets the fast-growing AI data center infrastructure market.
Foxconn contributes global server manufacturing and AI hardware integration expertise, while Teco brings heavy electrical systems, energy management, and cooling infrastructure know-how. Together, they offer a comprehensive solution for major AI infrastructure projects.
