Foxconn chairman says new OpenAI tie-up in works, rejects AI bubble fears

Foxconn chairman Young Liu said on Friday, October 30, 2026 that the Taiwanese electronics maker is working on a new partnership with OpenAI and will announce it once the terms are finalised, according to Reuters. Speaking to reporters in Taipei at the company's annual Hon Hai Tech Day, Liu said he had met OpenAI chief executive Sam Altman earlier that day. He also rejected fears of an artificial intelligence bubble and said Foxconn, formally Hon Hai Precision Industry, expects to keep growing at double-digit rates next year. Bloomberg reported that Liu described the meeting as a discussion of the companies' existing partnership and declined to give details.

A growing part of Foxconn's business is building the servers and racks that power AI data centres. These are the large machines, packed with chips, that train and run AI models such as ChatGPT. A closer partnership with OpenAI, one of the biggest buyers of AI computing, would deepen Foxconn's role in that supply chain.

The comments on an AI bubble come at a sensitive moment. On the same day, US technology shares fell sharply after disappointing results from Amazon and Intel revived doubts about the huge sums being spent on AI. A major hardware supplier saying demand remains strong, and forecasting double-digit growth, is a direct counter to those fears, although it is also the view of a company that benefits from the spending.

For businesses that use technology, the story shows how the AI build-out is reshaping manufacturing. Foxconn's Houston plants, its plan to expand there, and its target of a larger share of the AI server market show how production of AI hardware is spreading to new locations. Bloomberg also reported that the company aims to lift its gross margins to about 10% by making more of the high-value components itself.

For India, where Foxconn also has manufacturing operations, the company's shift towards AI servers will be watched by policymakers and suppliers who want a share of higher-value electronics work.

Short-term: Investors will wait for details of any new OpenAI agreement. Liu's comments may support sentiment towards AI hardware suppliers after a difficult week for technology shares.

Long-term: If the new tie-up goes ahead, Foxconn could become a more central supplier of AI infrastructure, with OpenAI gaining more secure access to hardware. Whether AI spending is sustainable remains the main question for the whole sector.

Who is affected: Foxconn's investors, workers and suppliers; OpenAI and other buyers of AI computing; chipmakers such as Nvidia; and countries, including India, competing to host advanced electronics manufacturing.

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