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Shares of Foxconn Industrial Internet increased after the mainland Chinese branch of Taiwan-based supplier to Apple announced plans to invest 2 billion CNY (approximately $283 million) in China’s artificial intelligence computing industry.
The company’s stock closed up 1.9% at 60.96 CNY (around $8.61) in Shanghai today, after reaching an earlier peak of a 4.8% gain.
The firm will direct 2 billion CNY into its subsidiary, FII Cloud Computing Tianjin, to enhance AI computing infrastructure and bolster research and development efforts across China. This move aims to strengthen its leadership position in the AI computing sector, the company stated yesterday.
Throughout this year, the company has focused its strategy on strengthening its supply chain for AI computing. It has concentrated on key technologies and emerging trends in AI infrastructure and applications.
In June, the company also announced a 726 million CNY (about $103 million) investment to establish a research and development center dedicated to precision components for next-generation smartphones. The project is expected to be completed by the end of next year.
Driven by robust growth in AI operations, the company reported revenues of 604 billion CNY (approximately $85.4 billion) for the first three quarters of the year—a 38% increase compared to the previous year. The cloud computing division saw revenue jump over 65%, with a rise of more than 75% in the third quarter. Net profit grew 49%, reaching 22.5 billion CNY (around $3.2 billion).
The company remains optimistic about the demand for AI server cabinets in the coming year, sharing its positive outlook during the earnings call.
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