Foxconn is poised to become the exclusive manufacturer of AI servers for the US government’s “Stargate Project,” a massive $500 billion AI infrastructure initiative, according to sources familiar with the matter.
The contract, which could be announced as early as this month, would provide a significant boost to Foxconn’s performance this year. The Taiwanese contract manufacturer has declined to comment on order dynamics.
The Stargate Project, unveiled by President Trump in late January, represents a joint venture between technology giants including SoftBank, OpenAI, Oracle, and MGX. SoftBank and OpenAI have each pledged $19 billion in investment, with both set to hold 40% stakes in the joint venture. Oracle and MGX will contribute $7 billion each.
With initial funding of $100 billion and plans to invest up to $500 billion in US AI infrastructure by 2029, the project is currently constructing ten data centers in Texas with plans to expand to additional states.
Industry analysts note that Foxconn’s position as the global leader in AI server manufacturing, combined with its existing production facilities in Texas, gives it a decisive advantage in securing the contract. The company has been expanding its US footprint, with recent investments including $253 million to acquire FOXCONN ASSEMBLY LLC and $33 million for land and facilities in Harris County, Texas.
Foxconn Chairman Young Liu has previously stated the company’s commitment to expanding US operations in alignment with Trump’s manufacturing policies, making it one of the most extensively US-based Taiwanese electronics manufacturers.
