Taipei: Hon Hai Precision Industry Co., the largest contract electronics maker globally, announced that its board has approved a NT$42 billion (US$1.371 billion) investment plan to acquire artificial intelligence equipment for a supercomputing center. The Taiwan-based company plans to self-finance this investment over a year starting in December, aiming to expand its cloud computing services and advance its smart manufacturing, smart electric vehicles, and smart cities platforms.

According to Focus Taiwan, Hon Hai Chairman Young Liu recently indicated that the company is strategizing for the next five years. Liu emphasized the nascent stage of AI applications and their potential to penetrate various industries. Globally recognized as Foxconn, Hon Hai has been focusing on AI infrastructure development over the past few years.

In March, the company introduced its first traditional Chinese version of an advanced AI large language model to enhance the analytical capabilities of its smart platforms. Furthermore, in May, Hon Hai announced a partnership with American AI chip designer Nvidia Corp. to construct an AI factory supercomputing center in Taiwan.

On October 14, Hon Hai revealed its plans to implement Nvidia's 800 VDC data center power architecture at its K-1 AI data center in Kaohsiung, setting it as a benchmark for server, data center, and renewable energy integration.