Chairman Young Liu flagged new work with OpenAI at Hon Hai Tech Day and forecast double-digit growth for next year
Foxconn, the world’s largest contract electronics manufacturer, has another project brewing with OpenAI. Chairman Young Liu flagged the collaboration on Friday, October 30, 2026, at the company’s annual Hon Hai Tech Day in Taipei.
Liu also had a message for anyone nervously watching AI valuations. He said he does not see an AI bubble.
What Foxconn actually said
The announcement came after Liu met OpenAI CEO Sam Altman earlier the same day. Liu said Foxconn is developing a new partnership with the AI developer. He did not lay out the scope, the timeline or any financial terms.
Liu paired the OpenAI news with a confident outlook for Foxconn itself. He forecast that the company will post double-digit growth next year, pointing to what he sees as durable demand for AI technology.
Foxconn has numbers to anchor that optimism. The company currently holds 40% of the global AI server market. It aims to lift that share to 45% in 2027, and research on the company suggests it could potentially reach 50% within a few years.
Building on a 2025 deal
This is not a first date. In November 2025, Foxconn and OpenAI agreed to co-design and manufacture components for AI data centers in the US.
That earlier arrangement came with no financial obligations attached. What OpenAI did get was early evaluation access to the hardware, along with options to make purchases down the line.
Foxconn is already the largest manufacturer of AI servers for Nvidia, the dominant supplier of AI chips.
Factories in Texas, ambitions everywhere
Foxconn’s US footprint is part of the pitch. The company runs multiple manufacturing facilities in the country, including six buildings in Houston, Texas.
It plans to expand production capacity as demand for AI infrastructure grows. The 2025 agreement with OpenAI was specifically focused on US data center hardware, so domestic manufacturing is central to the partnership rather than a side detail.
Foxconn is also leaning on vertical integration. The company’s capabilities stretch from individual components all the way to complete rack-scale systems.
Over the coming years, AI infrastructure is expected to drive a growing share of Foxconn’s revenue growth.
What this means
For investors tracking AI hardware, the most concrete signal here is not the OpenAI news itself. It is Liu’s forecast of double-digit growth combined with the market share targets. Those are numbers Foxconn can be held to, and they suggest the company expects orders to keep flowing through 2027.
The OpenAI collaboration is strategically interesting but financially undefined for now. Given that the 2025 deal carried no financial obligations, the market will want to see whether this next phase converts options into actual purchase commitments.
The risk for Foxconn lies in concentration. A company holding 40% of the AI server market, and aiming for more, is deeply tied to the spending plans of a relatively small group of hyperscalers and AI labs.
On the competitive front, a 45% target for 2027 implies Foxconn intends to take share from rival server makers rather than simply ride overall growth. Its vertical integration and US manufacturing base are the tools it is betting on to do that, particularly as customers prioritize domestic production for data center hardware.
What to watch next: any disclosure of the OpenAI collaboration’s scope, whether the new arrangement includes binding orders, progress on Houston capacity expansion, and whether quarterly results bear out Liu’s double-digit growth call.
