Hon Hai Technology Group (Foxconn) and TECO Electric & Machinery Co Ltd have announced a strategic alliance and share swap to strengthen their AI infrastructure capabilities and push these two major Taiwanese technology players into key markets in the global supercomputer race. The partnership will combine Foxconn's, the world's largest electronics manufacturing services provider and IA server producer, and TECO's, leader in industrial electrical engineering and eco-friendly innovation, expertise to explore joint commercial opportunities related to AI data centers. The companies will offer modular complete products for data centers, engineering services, and competitive total solutions. As part of the deal, TECO will take a 0.519% stake in Hon Hai Precision Industry Co Ltd (Foxconn) while Foxconn will hold 10% of TECO.