Foxconn to spend up to $3bn a year on Al

Foxconn will invest $2 billion to $3 billion a year in AI, the head of the world’s largest contract electronics maker told Reuters. Foxconn Chairman Young Liu also said he expects a shakeout in China's crowded electric-vehicle market “soon” and that the company is talking with the Japanese government about potential investments in artificial intelligence and EVs.

- DANIEL LEUSSINK MAKI SHIRAKI DAVID DOLAN

“For now, Al will be the majority of the investment,” Mr Liu told Reuters on a visit to Tokyo earlier this month. Mr Liu’s comments were embargoed until Friday, to coincide with the Apple supplier's annual Hon Hai Tech Day.

The investment in Al infrastructure and technology development over the next three to five years means it will account for more than half of Foxconn’s roughly $5 billion in annual capital expenditure, said Mr Liu.

The Taiwanese company’s cloud and networking business, which includes AI servers, has surpassed consumer electronics for two consecutive quarters, highlighting how quickly its revenue mix is shifting.