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Foxconn and Intel $INTC +4.43% announced plans to jointly build rackscale AI infrastructure for data center, hyperscale, and intelligence center deployments, with Foxconn providing system integration capabilities for racks built on Intel Xeon processors.

The announcement came at Computex 2026 in Taipei and also involves AI chip company SambaNova. The companies are demonstrating production-ready racks that pair Intel Xeon processors with SambaNova SN-50 Reconfigurable Dataflow Units, which are designed to deliver AI inference performance with improved cost and power efficiency, the companies said. Foxconn also plans to manufacture a CPU-dense variant of the infrastructure for workloads that do not require additional acceleration, including cost-optimized inference and data processing.

Beyond the rack systems, Intel said Foxconn would explore collaboration in design services and custom silicon development. Edge computing use cases — among them robotics, smart cities, and smart manufacturing — are also part of the collaboration's scope, The Wall Street Journal reported.

"Our collaboration with Intel will combine the strengths of both companies across computing platforms, system integration, and global supply chain capabilities," Foxconn Chairman and CEO Young Liu said in a statement.