Foxconn and Intel to jointly develop AI platform in 2026 strategic tie-up

Hon Hai Precision Industry Co. and Intel Corp. have formed a strategic partnership to jointly develop an AI platform, combining the Taiwanese manufacturer's global production network with the US chipmaker's processor technology. The deal comes as Hon Hai, also known as Foxconn Technology Group, pursues multiple AI-related investments across Europe and Asia, including semiconductor packaging and AI infrastructure projects in France totaling more than 370 million euros.

"I don't look at people as competitors. I look at the collaboration," Intel Chief Executive Officer Lip-Bu Tan said at the Computex trade show in Taipei this week, when asked about the company's relationship with Taiwan Semiconductor Manufacturing Co. Intel regards TSMC as a longstanding partner and will continue outsourcing production of advanced chips, Tan said, adding that Nvidia is also a "good friend" of the company.

The partnership adds to Hon Hai's expanding AI footprint. Chairman Young Liu met with French President Emmanuel Macron in Paris at the annual "Choose France" summit, where the company unveiled two new investments. The first is Tessalia Technology SAS, a semiconductor packaging joint venture with Thales Group and Radiall SA. The facility near Bordeaux will focus on outsourced semiconductor assembly and testing for aerospace, telecom infrastructure, automotive and medical sectors. Production is expected to begin at the end of 2029, with a target of more than 50 million system-in-package components per year by 2033 and 800 employees at full production. Investment could exceed 250 million euros, or about US$291 million.

The second project is a strategic collaboration with Bull to manufacture AI and cloud infrastructure in Europe for global markets. The partnership will combine both companies' strengths to deliver AI infrastructure solutions, including computing systems and related components, leveraging Bull's factory in Angers, western France, and Hon Hai's factories in the Czech Republic. Initial investment is expected to exceed 120 million euros.

The Intel tie-up positions Hon Hai to capture more value from the AI hardware supply chain as demand for custom AI infrastructure surges. For Intel, the partnership provides a channel to scale its AI platform through one of the world's largest electronics manufacturers, as the chipmaker works to regain ground in the data center AI market against Nvidia Corp. and Advanced Micro Devices Inc. Hon Hai's ability to manufacture at scale across multiple geographies gives both companies a production base that can serve European and global customers without relying solely on Asian supply chains.

The partnership also represents a strategic pivot for Intel, which has been working to expand its foundry services and AI chip portfolio. By teaming with Hon Hai, Intel gains access to the manufacturer's extensive customer network across automotive, telecom and industrial sectors — markets where Intel has historically been less dominant than in personal computers and data centers. For Hon Hai, the deal deepens its relationship with a major chip supplier at a time when AI infrastructure spending is accelerating globally.

For investors, the partnership shows that both companies are betting on a multi-year buildout of AI infrastructure that extends beyond the hyperscale data center market dominated by Nvidia. Hon Hai's stock, listed on the Taiwan Stock Exchange, has benefited from the broader AI hardware boom as the company assembles servers for Nvidia and other chipmakers. Intel shares have lagged behind AI chip peers as the company works to regain technology leadership, with the stock trading at a discount to the broader semiconductor sector.

This article is for informational purposes only and does not constitute investment advice.