Foxconn Chairman Young Liu has said that demand for artificial intelligence infrastructure remains strong, as the Taiwanese electronics manufacturer plans to expand its US operations and deepen its collaboration with OpenAI. The company is targeting a 50% share of the global AI server market within the next two years.
Speaking to Bloomberg Television on October 30, Liu said spending by major cloud service providers reflected demand for computing infrastructure rather than speculative investment. His comments come amid concerns over whether the scale of capital expenditure on AI data centres can be sustained.
Foxconn, formally known as Hon Hai Precision Industry, is one of Nvidia's major manufacturing partners and a supplier of servers used to support AI workloads.
Liu said the company currently holds approximately 40% of the AI server market and expects to approach 50% within one to two years. He also outlined plans to increase gross margins to around 10% by manufacturing more high-value components.
The chairman confirmed meeting OpenAI Chief Executive Officer Sam Altman earlier that day to discuss the companies' existing partnership. Although Liu did not disclose details of their discussions, he indicated that further collaboration was being considered.
Foxconn and OpenAI announced an agreement in November 2025 to jointly develop data centre hardware, including server racks and related components. The arrangement was intended to support AI infrastructure manufacturing in the United States.
Liu described OpenAI's interest in vertical integration as complementary to Foxconn's manufacturing capabilities. However, he said additional plans would be disclosed only after they were finalised.
The company is also expanding its manufacturing presence in the United States. Liu said Foxconn had invested approximately $4 billion to $5 billion over the past two years and expected a steady pace of investment in the coming years.
He indicated that future spending would increasingly focus on supply chains and components rather than system assembly alone.
Foxconn operates six factory buildings in Houston, Texas, where it manufactures AI servers for Nvidia. The company has identified further expansion opportunities as demand for AI infrastructure increases.
AI-related products have become an increasingly important part of Foxconn's business. Its cloud and networking products division, which includes AI servers, accounted for 51% of second-quarter revenue, exceeding half of quarterly revenue for the first time.
Liu also said Foxconn expects double-digit growth next year, supported by its AI infrastructure business.
His remarks come as technology companies continue investing in computing capacity to develop and operate AI systems. While questions remain about the returns on these investments, Foxconn is positioning its manufacturing operations to support anticipated demand for servers, components and data centre equipment.
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