Teco and Foxconn partner together for data center business : US Pioneer Global VC DIFCHQ SFO NYC Singapore – Riyadh Swiss Our Mind

Teco and Foxconn have announced a partnership for a data center business.

Teco Electric and Machinery specializes in the manufacture of electric motors. It has also delivered over 700MW of data center projects in Southeast Asia. Foxconn, officially known as Hon Hai Technology Group, is a contract manufacturer specializing in electronics and IT products. It is a major manufacturer of servers.

Foxconn Teco partnership for DC

TECO spokesperson Andy Chien and Foxconn spokesperson James Wu, left to right– Teco Electric and Machinery; Hon Hai Technology Group

Both companies were founded and are based in Taiwan.

As announced on July 30 at the Taiwan Stock Exchange, the partnership will be formalized through a share exchange. Teco will take a 0.519 percent stake in Foxconn, and Foxconn will take a 10 percent stake in Teco. The no-cash transaction is estimated for completion in Q4, subject to regulatory approvals.

The data center business will focus on modular designs, with manufacturing located in Taiwan and the United States. Both companies have an existing manufacturing base in the US, but Teco’s manufacturing will be handled by its American joint venture, Teco-Westinghouse.

Teco-Westinghouse was formed after Teco acquired all shares owned by Westinghouse Electric Corporation in a joint venture between Teco and Westinghouse Electric, known at that time as Westinghouse Motor Company.

Teco Chairman Morris Li said: “Together with Foxconn’s manufacturing base in the United States, [the strategic partnership] is in line with the strategic direction of the two companies to expand American manufacturing and reshape the global supply chain.”

Target markets for the business include Taiwan, Asia, the Middle East, and the US.

Foxconn chairman Young Liu said: “Time-to-market is key in the global super-computing race. Modular design is gaining popularity. As AI data centers grow in size and demand ramps higher, teaming up with Teco means both companies are able to level up and rapidly deliver comprehensive, vertically-integrated solutions to our customers – the Tier-1 CSPs and hyperscalers.”

The two companies have previously collaborated on factory energy saving and emission reduction.

https://www.datacenterdynamics.com/en/news/teco-and-foxconn-partner-together-for-data-center-business/