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08 August 2025
Asia Manufacturing Reviewfactory
Aug 08, 2025Asia Manufacturing Review
German software giant SAP has officially established a research and development center in Vietnam, intending to invest over €150 million ($175 million) in the next five years. The SAP Labs Vietnam facility, located in Saigon ward, Ho Chi Minh City, officially started functioning on Thursday. It is SAP’s second research and development center in Southeast Asia, after its site in Singapore.
During the launch event, Clas Neumann, senior vice president and head of the SAP Labs Global Network, stated that the moment is ideal to invest in Vietnam because of its plentiful tech talent, robust governmental backing for innovation and digital transformation, and a strong academic foundation.
SAP Labs Vietnam has recruited more than 200 staff members since September 2024, aiming to grow to 500 by 2027. In 2025, the company anticipates hiring an extra 350 employees. Among SAP’s 20 worldwide research centers, the Vietnam facility has achieved the quickest growth in its initial year of operation.
Vietnam is presently among the rapidly expanding digital economies in Southeast Asia, with a projected growth rate of 20% in 2024, accounting for 18.3% of the nation's GDP, which is three times the general economic growth rate, based on information from the former Ministry of Information and Communications (now the Ministry of Science and Technology).
Also Read: Vietnam Ranks Second in SEA for Data Center Investment Returns
During the ceremony, Deputy Prime Minister Nguyen Chi Dung highlighted that Vietnam has recognized 11 key technology sectors and intends to establish itself as a global hub for AI. He urged SAP to increase its investments in HCMC and other areas throughout the nation.
He also urged SAP to assist in training a substantial, high-caliber tech workforce, aligning with the government’s objective of cultivating 50,000 to 100,000 semiconductor and AI engineers. SAP stands as a worldwide frontrunner in enterprise software and artificial intelligence (AI), boasting a market capitalization exceeding €310 billion.
Manik Saha, managing director of SAP Labs in Singapore and Vietnam, stated that the organization is dedicated to establishing a talent ecosystem by engaging with Vietnamese tech experts and collaborating with local universities to generate sustainable career prospects for young people.
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Apple Expands Us Investment To $600 Billion With New ProgramSubscribe to our free newsletter today to keep up to date with the latest manufacturing news.
Apple announced it will add $100 billion to its existing US investment plan, bringing the total to $600 billion over the next four years. This marks one of the largest single-country commitments in the company’s history. The funding will expand domestic production capacity, deepen supplier partnerships, and strengthen research and development infrastructure across several states. Company leaders have framed the move as part of a long-term effort to secure critical components and reinforce supply chain stability amid global market uncertainty.
Central to the expansion is the American Manufacturing Program, a strategy aimed at increasing US-based production. The initiative involves 10 primary partners: Corning, Coherent, GlobalWafers America, Applied Materials, Texas Instruments, Samsung, GlobalFoundries, Amkor, Broadcom, and TSMC. These companies contribute expertise ranging from semiconductor fabrication to precision optics. By localizing production, Apple seeks to lessen reliance on overseas manufacturing and respond more effectively to policy shifts.
One major investment is in Corning’s Harrodsburg, Kentucky facility, which will become the largest and most advanced smartphone cover glass production site in the world. The facility will supply every iPhone and Apple Watch with cover glass made in Kentucky. Apple is funding equipment upgrades and adding hundreds of jobs to the plant’s workforce. The company and Corning will also establish the Apple-Corning Innovation Center to develop new materials and manufacturing processes for future devices.
Apple is also working toward a complete US silicon supply chain. Partnerships with TSMC in Arizona, Samsung in Texas, GlobalFoundries in New York, and other semiconductor firms are expected to produce more than 19 billion chips in 2025. These efforts will support processors, memory modules, and other essential parts for iPhones, Macs, and wearables. The investment addresses both performance needs and supply security as chip demand grows.
Apple says its US operations currently support 450,000 supplier and partner jobs nationwide. The new program will add 20,000 direct jobs in areas such as research and development, silicon engineering, software development, and artificial intelligence. States including Kentucky, Texas, and Arizona will benefit from direct infrastructure investments, while suppliers will gain from expanded orders and long-term contracts.
The announcement comes as a 100 percent tariff on imported semiconductors is under consideration. Companies dependent on overseas chip production could see higher costs, but Apple’s increased domestic manufacturing may help avoid the most severe effects. Analysts view the strategy as a way to reduce trade risks while aligning with policies that encourage US technology production.
Apple’s expanded investment reflects a plan to pair business growth with supply chain resilience. By committing to large-scale domestic projects, the company signals confidence in both its market outlook and the ability of US manufacturing to support the next wave of consumer technology.
Sources:
Apple
Manufacturing Today
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11 August 20253 min readApple Expands Us Investment To $600 Billion With New Program
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11 August 2025
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Ford To Invest $2 Billion For Louisville Electric TrucksFord, the company that invented the moving automotive assembly line, is rethinking how it will make future vehicles, announcing plans to invest $5 billion in Louisville, Kentucky, and Marshall, Michigan, for its next generation of electric trucks.
“We have all lived through far too many ‘good college tries’ by Detroit automakers to make affordable vehicles that ends up with idled plants, layoffs and uncertainty,” Ford President and CEO Jim Farley said. “So, this had to be a strong, sustainable and profitable business. From Day 1, we knew there was no incremental path to success. We empowered a tiny skunkworks team three time zones away from Detroit. We tore up the moving assembly line concept and designed a better one.”
Louisville Assembly Plant, now home to the Escape small crossover, will get $2 billion of the investment for what Ford is calling a modular family of future EVs (the company already announced the $3 billion battery plant). Powered by low-cost but lower-range lithium-iron-phosphate (LFP) batteries, Ford officials say the new vehicles will use dramatically fewer parts and take less assembly time than internal combustion engine options. Targets include:
Rather than a straight assembly line, Bryce Currie, Ford vice president, Americas Manufacturing, says the new system will be more like a tree – three separate production processes that come together for final assembly.
Industry Week
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11 August 20252 min readFord To Invest $2 Billion For Louisville Electric Trucks
Industry Week
11 August 2025
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Ford To Invest Nearly $2 Billion In Kentucky Assembly Plant To Produce EvsLOUISVILLE, Ky. (AP) — Ford Motor Co. will invest nearly $2 billion retooling a Kentucky factory to produce electric vehicles that it says will be more affordable, more profitable to build and will outcompete rival models.
The automaker's top executive unveiled the new EV strategy at Ford's Louisville Assembly Plant which, after producing gas-powered vehicles for 70 years, will be converted to manufacture electric vehicles.
"In our careers, as automobile people we're lucky if we get to work on one, maybe two, projects that really change the face of our industry," CEO Jim Farley told plant workers in Kentucky on Monday. "And I believe today is going to light the match as one of those projects for all of us here."
The Big Detroit automakers have continued to transition from internal combustion engines to EV technology even as President Donald Trump's administration unwinds incentives for automakers to go electric. Trump's massive tax and spending law targets EV incentives, including the imminent removal of a credit that saves buyers up to $7,500 on a new electric car.
Yet Farley and other top executives in the auto industry say that electric vehicles are the future and there is no going back.
The first EV to be produced by the revamped Louisville production process will be a midsize, four-door electric pickup truck in 2027 for domestic and international markets, the company said Monday.
The new electric trucks will feature plenty of interior space to fit five adults and pack enough power to have a targeted 0-60 time as fast as a Mustang EcoBoost but with more downforce, Ford said
The electric trucks will be powered by lower-cost batteries made at a Ford factory in Michigan. The Detroit automaker previously announced a $3 billion investment to build the battery factory.
The automaker sees this as a "Model T moment" for its EV business — a reference to revolutionary changes on the production line led by the company's founder, Henry Ford, when it began churning out vehicles from a factory more than a century ago. Farley said the changes will upend how electric vehicles are made in the U.S.
"It represents the most radical change on how we design and how we build vehicles at Ford since the Model T," Farley said.
The company said it will use a universal platform and production system for its EVs, essentially the underpinning of a vehicle that can be applied across a wide range of models.
The Louisville factory — one of two Ford assembly plants in Kentucky's largest city — will be revamped to cut production costs and make assembly time faster as it's prepared to churn out electric vehicles.
The result will be "an affordable electric vehicle that we expect to be profitable," Farley said in an interview with The Associated Press ahead of the announcement. "This is an example of us rejuvenating our U.S. plants with the most modern manufacturing techniques."
The new platform enables a lineup of affordable vehicles to be produced at scale, Ford said. It will reduce parts by 20% versus a typical vehicle, with 25% fewer fasteners, 40% fewer workstations dock-to-dock in the plant and a 15% faster assembly time, Ford said.
The traditional assembly line will be transformed into an "assembly tree" at the Louisville plant, the company said. Instead of one long conveyor, three subassembly lines will operate simultaneously and then join together, it said.
Other specifications for the midsize electric truck – including its reveal date, starting price, EPA-estimated battery range, battery sizes and charge times — will be announced later, the company said. Farley revealed that the truck will have a targeted starting price of about $30,000.
Ford said its investment in the Louisville plant will secure 2,200 hourly jobs.
Kentucky Gov. Andy Beshear said Monday that the automaker's plans for the Louisville plant will strengthen a more than century-old partnership between Ford and the Bluegrass State.
"This announcement not only represents one of the largest investments on record in our state, it also boosts Kentucky's position at the center of EV-related innovation and solidifies Louisville Assembly Plant as an important part of Ford's future," Beshear said.
Ford said its combined investment of about $5 billion at the Kentucky assembly plant and Michigan battery plant is expected to create or secure nearly 4,000 direct jobs between the two plants while strengthening the domestic supply chain with dozens of new U.S.-based suppliers.
Ford previously forecast weaker earnings growth for this year and further losses in its electric vehicles business as it works to control costs. Model e, Ford's electric vehicle business, posted a full-year loss of $5.08 billion for 2024 as revenue fell 35% to $3.9 billion.
Ford's new EV strategy comes as Chinese automakers are quickly expanding across the globe, offering relatively affordable electric vehicles.
"We're not in a race to build the most electric cars," Farley told the AP when asked about competition from China. "We're in a race to have a sustainable electric business that's profitable, that customers love.
"And this new vehicle built in Louisville, Kentucky, is going to be a much better solution to anything that anyone can buy from China," he added.
Ford could have opted to launch its EV project overseas to reap lower-cost labor and currency advantages but instead is "taking the fight to our competition" from the plant in Kentucky, Farley said at Monday's event. But the Ford CEO cautioned that "there are no guarantees" with project.
"We're doing so many new things I can't tell you with 100% certainty that this will all go just right," he said. "It is a bet. There is risk. The automotive industry has a graveyard littered with affordable vehicles that were launched in our country with all good intentions. And they fizzled out with idle plants, laid off workers and red ink. And at Ford ... we set out to break that cycle."
Manufacturing Net
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11 August 20255 min readFord To Invest Nearly $2 Billion In Kentucky Assembly Plant To Produce Evs
Manufacturing Net
11 August 2025
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Ford Invests $5 Billion In Innovative Production SystemFord's Louisville Assembly Plant. Photo courtesy of Ford Motor Company
LOUISVILLE, KY—Ford Motor Company is making a $5 billion investment in U.S. manufacturing and technology, creating or securing nearly 4,000 jobs across its Louisville Assembly Plant and BlueOval Battery Park Michigan.
The initiative will debut the new Ford Universal EV Platform and Ford Universal EV Production System—designed to produce a family of affordable, high-quality, software-defined electric vehicles at scale.
The first product from the platform will be a midsize, four-door electric pickup, targeted to start at about $30,000 and launch in 2027. Built at Louisville Assembly Plant, the truck will offer more passenger space than a Toyota RAV4, a lockable bed and frunk, a targeted 0–60 mph time comparable to a Mustang EcoBoost, and advanced over-the-air software capabilities.
Ford’s new EV platform reduces vehicle parts by 20%, fasteners by 25%, and assembly time by 15% while integrating a cobalt- and nickel-free lithium iron phosphate (LFP) prismatic battery pack as a structural floor. The new production system replaces the traditional moving line with an “assembly tree,” enabling sub-assemblies—front, rear, and battery structure—to be built in parallel, improving ergonomics, quality, and efficiency.
Louisville Assembly Plant will expand by 52,000 square feet, gain advanced digital infrastructure, and receive nearly $2 billion in upgrades, securing 2,200 hourly jobs in Kentucky. BlueOval Battery Park Michigan will begin producing prismatic LFP batteries in 2026, supporting domestic supply chain growth.
“With this platform and production system, we’re reinventing the factory and reimagining the affordable EV,” said Jim Farley, Ford President and CEO. “This is a strong, sustainable, and profitable path forward—built by American workers for American drivers.”
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On Demand Learn how manufacturers are bridging the gap between the shop floor and ERP systems to gain real-time visibility, streamline operations, and kick-start digital transformation—without waiting years.
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11 August 20253 min readFord Invests $5 Billion In Innovative Production System
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11 August 2025
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Malaysia Boosts Palm Oil Replanting With $330 Million InvestmentMalaysia is increasing initiatives to renew its aging oil palm plantations with a suggested investment of US$330 million (RM1.4 billion) in the coming five years. The program, as part of the 13th Malaysia Plan (13MP), seeks to enhance productivity and uphold the nation’s rank as the second-largest palm oil producer globally.
The funding, announced by Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani, will mainly assist smallholders in replacing older trees with more productive varieties. Johari highlighted that aging plantations, some exceeding 25 years, are leading to stagnant yields and jeopardizing Malaysia’s prospective export capability.
In 2023, just 132,000 hectares were replanted, missing the government's goal of 4% yearly replanting. The replanting rate declined to 2% last year, raising worries about future sustainability.
“When replanting is not being taken care of, it will affect our future exports,” Johari told parliament, adding that the government is also offering a matching grant of RM100 million (US$23.65 million) this year to incentivise smallholders.
The replanting effort is in line with wider objectives to modernize Malaysia's agricultural industry via mechanization, automation, and focused Research & Development.
Prime Minister Datuk Seri Anwar Ibrahim, during the presentation of the 13MP, reaffirmed the government’s dedication to rejuvenating key sectors, such as palm oil, rubber, and cocoa.
Also Read: Uzbekistan, Mongolia Partner to Boost Agri, Food Sectors
Industry experts and economists have praised the decision, emphasizing that replanting is essential for preserving Malaysia’s competitiveness in the international palm oil market. The government anticipates that the replanting program will greatly aid in export growth and rural development, supported by commodity exports worth RM115 billion.
“Malaysia’s commodity exports stand at about RM115 billion, and this replanting initiative is expected to contribute to our export growth,” added Johari. “If we can upgrade and replant large areas of ageing oil palm trees, it will boost our capacity and competitiveness in the global palm oil market.”
With the start of parliamentary discussions on the 13MP, stakeholders are anticipated to offer input on execution plans and financial models. The initiative's success could act as a model for sustainable agricultural reform throughout Southeast Asia.
Asia Manufacturing Review
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08 August 20252 min readMalaysia Boosts Palm Oil Replanting With $330 Million Investment
Asia Manufacturing Review
08 August 2025
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Sap Invests $175 Million In Vietnam R&D CenterGerman software giant SAP has officially established a research and development center in Vietnam, intending to invest over €150 million ($175 million) in the next five years. The SAP Labs Vietnam facility, located in Saigon ward, Ho Chi Minh City, officially started functioning on Thursday. It is SAP’s second research and development center in Southeast Asia, after its site in Singapore.
During the launch event, Clas Neumann, senior vice president and head of the SAP Labs Global Network, stated that the moment is ideal to invest in Vietnam because of its plentiful tech talent, robust governmental backing for innovation and digital transformation, and a strong academic foundation.
SAP Labs Vietnam has recruited more than 200 staff members since September 2024, aiming to grow to 500 by 2027. In 2025, the company anticipates hiring an extra 350 employees. Among SAP’s 20 worldwide research centers, the Vietnam facility has achieved the quickest growth in its initial year of operation.
Vietnam is presently among the rapidly expanding digital economies in Southeast Asia, with a projected growth rate of 20% in 2024, accounting for 18.3% of the nation's GDP, which is three times the general economic growth rate, based on information from the former Ministry of Information and Communications (now the Ministry of Science and Technology).
Also Read: Vietnam Ranks Second in SEA for Data Center Investment Returns
During the ceremony, Deputy Prime Minister Nguyen Chi Dung highlighted that Vietnam has recognized 11 key technology sectors and intends to establish itself as a global hub for AI. He urged SAP to increase its investments in HCMC and other areas throughout the nation.
He also urged SAP to assist in training a substantial, high-caliber tech workforce, aligning with the government’s objective of cultivating 50,000 to 100,000 semiconductor and AI engineers. SAP stands as a worldwide frontrunner in enterprise software and artificial intelligence (AI), boasting a market capitalization exceeding €310 billion.
Manik Saha, managing director of SAP Labs in Singapore and Vietnam, stated that the organization is dedicated to establishing a talent ecosystem by engaging with Vietnamese tech experts and collaborating with local universities to generate sustainable career prospects for young people.
Asia Manufacturing Review
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08 August 20252 min readSap Invests $175 Million In Vietnam R&D Center
Asia Manufacturing Review
08 August 2025
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Epa Cancels $7 Billion Biden-Era Grant Program To Boost Solar EnergyWASHINGTON (AP) — The Environmental Protection Agency on Thursday terminated a $7 billion grant program intended to help pay for residential solar projects for more than 900,000 lower-income U.S. households, in the latest Trump administration move hindering the nation’s shift to cleaner energy.
The funding, part of the Biden-era's Solar for All program, was awarded to 60 recipients including states, tribes and regions for investments such as rooftop solar and community solar gardens. Solar, a renewable energy, is widely regarded as a way to introduce cleaner power onto the electrical grid and lower energy bills for American consumers.
Under Republican President Donald Trump, officials have pursued dozens of deregulatory measures related to federal rules intended to protect clean air and water. Last week, the EPA proposed rescinding the agency’s “endangerment finding” which serves as the scientific and legal basis for regulating planet-warming greenhouse gas emissions.
The administration has taken steps to bolster fossil fuels such as coal, oil and natural gas as it pursues American "energy dominance in the global market.
EPA Administrator Lee Zeldin said in a statement on social media that authority for the solar program was eliminated under the tax-and-spending law signed by Trump last month. It eliminated the Greenhouse Gas Reduction Fund, approved under the 2022 Inflation Reduction Act, that set aside $20 billion for community development projects to boost renewable energy and an additional $7 billion for the solar program.
“The bottom line is this: EPA no longer has the statutory authority to administer the program or the appropriated funds to keep this boondoggle alive,″ Zeldin said. “Today, the Trump EPA is announcing that we are ending Solar for All for good, saving US taxpayers ANOTHER $7 BILLION!”
Sen. Bernie Sanders, I-Vt, who introduced the Solar for All program to cut electric bills for working families, said Zeldin’s action was illegal.
“Solar for All means lower utility bills, many thousands of good-paying jobs and real action to address the existential threat of climate change,″ Sanders said in a statement. ”At a time when working families are getting crushed by skyrocketing energy costs and the planet is literally burning, sabotaging this program isn’t just wrong — it’s absolutely insane. We will fight back to preserve this enormously important program.”
Only $53 million of the $7 billion awarded has been spent, according to a tally by the research firm Atlas Public Policy. Several grant recipients this week said their programs were in planning phases.
Stephanie Bosh, senior vice president of the Solar Energy Industries Association, said the EPA has no legal authority to terminate grants already appropriated by Congress.
“These grants are delivering billions of dollars of investment to red and blue states alike,″ she said. Bosh said solar was one of the cheapest energy sources at a time of growing demand for electricity.
“This administration is continuing to dig itself into a hole,” she said.
The EPA has argued that the tax and policy law allows the agency to rescind the money it has already obligated. The recipients of that money disagree, saying the bulk of the money had already been disbursed and is not affected by the law.
Grant recipients have filed lawsuits challenging the administration’s actions, and a judge ruled in April the EPA cannot freeze the contracts.
Rhode Island Sen. Sheldon Whitehouse, the top Democrat on the Senate Environment Committee, called Zeldin’s elimination of the solar program a betrayal “that will further hike electricity costs and make our power grid less reliable.”
“Trump is — yet again — putting his fossil fuel megadonors first,” he added.
Manufacturing Net
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07 August 20253 min readEpa Cancels $7 Billion Biden-Era Grant Program To Boost Solar Energy
Manufacturing Net
07 August 2025
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Trump Announces Apple'S Plans To Invest $100 Billion More In U.S.WASHINGTON (AP) — Apple CEO Tim Cook joined President Donald Trump at the White House on Wednesday to announce a commitment by the tech company to increase its investment in U.S. manufacturing by an additional $100 billion over the next four years.
"This is a significant step toward the ultimate goal of ensuring that iPhones sold in the United States of America also are made in America," Trump said at the press conference. "Today's announcement is one of the largest commitments in what has become among the greatest investment booms in our nation's history."
As part of the Apple announcement, the investments will be about bringing more of its supply chain and advanced manufacturing to the United States as part of an initiative called the American Manufacturing Program, but it is not a full commitment to build its popular iPhone device domestically.
"This includes new and expanded work with 10 companies across America. They produce components — semiconductor chips included — that are used in Apple products sold all over the world, and we're grateful to the President for his support," Cook said in a statement announcing the investment.
The new manufacturing partners include Corning, Coherent, Applied Materials, Texas Instruments and Broadcom among others.
Apple had previously said it intended to invest $500 billion domestically, a figure it will now increase to $600 billion. Trump in recent months has criticized the tech company and Cook for efforts to shift iPhone production to India to avoid the tariffs his Republican administration had planned for China.
While in Qatar earlier this year, Trump said there was "a little problem" with the Cupertino, California, company and recalled a conversation with Cook in which he said he told the CEO, "I don't want you building in India."
India has incurred Trump's wrath, as the president signed an order Wednesday to put an additional 25% tariff on the world's most populous country for its use of Russian oil. The new import taxes to be imposed in 21 days could put the combined tariffs on Indian goods at 50%.
Apple's new pledge comes just a few weeks after it forged a $500 million deal with MP Materials, which runs the only rare earths producer in the country. That agreement will enable MP Materials to expand a factory in Texas to use recycled materials to produce magnets that make iPhones vibrate.
Speaking on a recent investors call, Cook emphasized that "there's a load of different things done in the United States." As examples, he cited some of the iPhone components made in the U.S. such as the device's glass display and module for identifying people's faces and then indicated the company was gearing to expand its productions of other components in its home country.
"We're doing more in this country, and that's on top of having roughly 19 billion chips coming out of the US now, and we will do more," Cook told analysts last week, without elaborating.
News of Apple's latest investment in the U.S. caused the company's stock price to surge by 5% in Wednesday's midday trading. That gain reflects investors' relief that Cook "is extending an olive branch" to the Trump administration, said Nancy Tengler, CEO of money manager Laffer Tengler Investments, which owns Apple stock.
Despite Wednesday's upturn, Apple's shares are still down by 15% this year, a reversal of fortune that has also been driven by the company's botched start in the pivotal field of artificial intelligence.
AP Technology Writer Shawn Chen contributed to this report.
Manufacturing Net
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06 August 20253 min readTrump Announces Apple'S Plans To Invest $100 Billion More In U.S.
Manufacturing Net
06 August 2025
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Iphone Manufacturer Foxconn Targets $1 Trillion Ai Market With Teco DealSubscribe to our free newsletter today to keep up to date with the latest manufacturing news.
Foxconn, best known as Apple’s iPhone assembler, is making a decisive pivot into the artificial intelligence data center sector. Its recent alliance with TECO Electric & Machinery Co., a legacy industrial firm, marks a strategic effort to diversify operations and capitalize on rising demand for AI infrastructure. The partnership reflects Foxconn’s broader ambition to become a full-stack supplier to the data center sector, a market expected to exceed $1 trillion globally in the coming years.
Foxconn’s dominance in consumer electronics has long been built on scale, labor coordination, and logistical precision. But that legacy business, particularly smartphone assembly, has matured. Margins are tightening and growth has plateaued. AI, in contrast, offers a newer frontier and an opportunity for Foxconn to apply its industrial capabilities to more profitable sectors.
Its relationship with Nvidia, the chipmaker behind the most in-demand AI processors, is particularly relevant. Earlier this year, Foxconn announced that it would co-develop a 100-megawatt AI data center in southern Taiwan, in phased buildouts beginning at 20 megawatts. The project highlights Foxconn’s expanding infrastructure capabilities and deepening ties to the AI ecosystem.
Revenue from AI servers is expected to double in the second quarter of 2025. With demand from hyperscalers like Microsoft and Meta reaching record levels, Foxconn sees a window to supply compute infrastructure at scale, not just chips or boards, but entire data center systems.
Foxconn’s equity alliance with TECO represents a targeted move to strengthen its infrastructure position. Under the terms of the deal, Foxconn will take a 10 percent stake in TECO via a share exchange, while TECO will receive about 0.519 percent of Foxconn’s outstanding shares. The transaction is expected to close by the end of 2025, pending regulatory approval.
TECO brings decades of experience in industrial electromechanical systems, from HVAC units to turbines, critical components in running high-density data centers. Foxconn contributes server manufacturing and system integration. Together, they plan to offer turnkey AI data center solutions.
Rather than a financial play, the move is a capabilities match. Both companies will jointly target international clients and collaborate on planning, deployment, and long-term support.
Instead of pursuing custom builds, the Foxconn-TECO model is centered on modularity. These pre-engineered or containerized data center units can be deployed quickly across different locations. Modular data centers reduce construction time, lower initial costs, and speed up scaling, all priorities for hyperscale providers racing to meet demand.
Foxconn aims to offer complete services, from AI server production to facility integration. That approach helps clients reduce the number of vendors and compress project timelines.
This shift also offers strategic control. The ability to localize production, respond to regional energy standards, and reduce shipping delays makes this an appealing option as workloads expand globally.
The global AI data center market is projected to top $1 trillion in spending over the next decade. That growth stems from rapid expansion in generative AI, machine learning, and ongoing digital transformation in multiple sectors.
Foxconn’s shift positions it among a small group of firms capable of serving this market end to end. Unlike traditional infrastructure providers that focus on power or cooling, Foxconn offers integrated compute and manufacturing solutions. With a presence in Asia, the United States, and the Middle East, it can support localized deployments and reduce exposure to geopolitical risks.
The TECO deal also addresses a critical need, thermal management and energy efficiency. Partnering with an electromechanical firm gives Foxconn the ability to deliver AI-ready, stable data center operations.
The partnership between Foxconn and TECO reflects a broader strategic transformation already in motion within Foxconn, as the company actively diversifies beyond consumer electronics into sectors such as electric vehicles, semiconductors, and artificial intelligence systems. By bringing TECO into its ecosystem, Foxconn strengthens its infrastructure capabilities, creating a more cohesive and vertically integrated foundation that connects these emerging business lines through physical deployment and operational execution.
Should market conditions continue to align with this strategic direction, Foxconn may evolve from being known primarily as a high-volume electronics assembler to positioning itself as a comprehensive AI infrastructure provider capable of supporting global compute demands. For TECO, the agreement offers an entry point into a fast-growing technology segment that builds naturally on its existing strengths in electromechanical systems, enabling it to participate in digital infrastructure growth without departing from its core engineering competencies.
Sources:
CNBC
Manufacturing Today
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05 August 20254 min readIphone Manufacturer Foxconn Targets $1 Trillion Ai Market With Teco Deal
Manufacturing Today
05 August 2025
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Australia Selects Japan'S Mitsubishi Heavy Industries For $6.5B Warship DealWELLINGTON, New Zealand (AP) — Australia said Tuesday it accepted a Japanese company's bid for a lucrative and hotly contested contract to build Australian warships, expected to be worth 10 billion Australian dollars ($6.5 billion).
Mitsubishi Heavy Industries’ Mogami-class frigate won the deal over rival Germany’s MEKO A-200 from Thyssenkrupp Marine Systems. Japan’s government lobbied heavily for the deal after missing out on Australia’s submarines contract to a French company in 2016.
“This is clearly the biggest defense industry agreement that will ever have been struck between Japan and Australia,” Defense Minister Richard Marles told reporters when he announced the deal Tuesday. “In fact, it’s really one of the biggest defense exports that Japan has ever engaged in.”
The fleet of 11 naval vessels will replace Australia’s ageing fleet of ANZAC-class ships. Three of the frigates will be built in Japan, with the first scheduled to be operational Australia in 2030, and the remaining eight due for construction in Australia.
Australian news outlets reported that the German company’s bid had emphasized their vessel’s cheaper price and their greater experience building ships abroad. But Pat Conroy, Australia’s Minister for Defense Industry, said the Mogami-class frigate was a “clear winner” when assessed by “cost, capability and meeting our schedule of delivery.”
The vessels have a range of up to 10,000 nautical miles (18,520 kilometers) and 32 vertical launch cells capable of launching long-range missiles. The frigates can operate with a crew of 90, compared to the 170 needed to operate the ANZAC-class ships.
Mitsubishi’s win was a boon for Japan’s defense industry, which has not built naval vessels abroad before. Japan, whose only treaty ally is the United States, considers Australia a semi-ally and has increasingly sought to deepen bilateral military cooperation amid ongoing regional tensions in the disputed South China Sea.
“We welcome the decision by the Australian government as a major step to further elevate Japan’s national security cooperation with Australia, which is our special strategic partner,” Japan’s Defense Minister Gen Nakatani said Tuesday.
Nakatani said co-developing the frigate will allow the two countries to train and operate with the same equipment and further improve operability and efficiency. Japan set up a joint taskforce of government and industry in an effort to win the bid.
Australian officials said work on a binding commercial contract with Mitsubishi Heavy Industries and the government of Japan would now begin, with a finalized agreement expected in 2026. They did not say how much each ship would cost or confirm a total figure for the package, citing ongoing negotiations.
But Conroy said the government had allowed AU$10 billion for the project over the next 10 years. It forms part of the AU$55 billion that Australia has budgeted for the navy’s entire surface combatant fleet during the same period.
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05 August 20253 min readAustralia Selects Japan'S Mitsubishi Heavy Industries For $6.5B Warship Deal
Manufacturing Net
05 August 2025
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Palantir Books First $1 Billion In Quarterly Sales After Dodging U.S. Spending CutsNEW YORK (AP) — Shares of Palantir Technologies appear to be heading toward another record high Tuesday after booking its first $1 billion in quarterly sales and raising its outlook for the year.
The stock rose above $170 before the opening bell Tuesday, which would be tops for the company that has already notched record highs four times this year, the most recent on July 25 when its stock closed at $158.80.
Since going public in 2020 when it posted a $1.17 billion annual loss, the artificial intelligence software company has swung to a profit. Profit rose 33% to $327 million in the second quarter.
Its $1 billion quarterly revenue haul was fueled by a 53% spike in government sales, despite massive spending cuts under President Donald Trump and his Department of Government Efficiency, once led by the world’s richest man Elon Musk.
“DOGE has had zero negative impact on Palantir’s U.S. government business, which achieved its fastest growth rate since the second quarter of 2021,” wrote William Blair analysts Louie DiPalma and Bryce Sandberg. “Palantir is clearly benefiting from AI industry momentum across its government and commercial customer bases.”
The company also recorded a 93% jump in business sales. Overall U.S. revenue surged 68% to $733 million.
Late Monday, Palantir raised its revenue expectations for 2025 to between $4.14 billion and $4.15 billion. It also raised its U.S. commercial revenue guidance to more than $1.3 billion, which would mean that Palantir achieved a growth rate of at least 85%.
“This was a phenomenal quarter,” CEO Alex Karp said in a statement accompanying the earnings release. “We continue to see the astonishing impact of AI leverage.”
Palantir, headquartered in Denver, Colorado, specializes in software platforms that pull together and analyze large amounts of data.
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05 August 20252 min readPalantir Books First $1 Billion In Quarterly Sales After Dodging U.S. Spending Cuts
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05 August 2025
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Jury Orders Tesla To Pay More Than $240 Million In Autopilot Crash CaseMIAMI (AP) — A Miami jury decided that Elon Musk’s car company Tesla was partly responsible for a deadly crash in Florida involving its Autopilot driver assist technology and must pay the victims more than $240 million in damages.
WATCH: Family of Man Killed in Cybertruck Fire Sues Tesla
The federal jury held that Tesla bore significant responsibility because its technology failed and that not all the blame can be put on a reckless driver, even one who admitted he was distracted by his cellphone before hitting a young couple out gazing at the stars. The decision comes as Musk seeks to convince Americans his cars are safe enough to drive on their own as he plans to roll out a driverless taxi service in several cities in the coming months.
The decision ends a four-year long case remarkable not just in its outcome but that it even made it to trial. Many similar cases against Tesla have been dismissed and, when that didn't happen, settled by the company to avoid the spotlight of a trial.
“This will open the floodgates,” said Miguel Custodio, a car crash lawyer not involved in the Tesla case. “It will embolden a lot of people to come to court.”
The case also included startling charges by lawyers for the family of the deceased, 22-year-old, Naibel Benavides Leon, and for her injured boyfriend, Dillon Angulo. They claimed Tesla either hid or lost key evidence, including data and video recorded seconds before the accident. Tesla said it made a mistake after being shown the evidence and honestly hadn’t thought it was there.
“We finally learned what happened that night, that the car was actually defective,” said Benavides' sister, Neima Benavides. “Justice was achieved.”
Tesla has previously faced criticism that it is slow to cough up crucial data by relatives of other victims in Tesla crashes, accusations that the car company has denied. In this case, the plaintiffs showed Tesla had the evidence all along, despite its repeated denials, by hiring a forensic data expert who dug it up.
“Today’s verdict is wrong," Tesla said in a statement, “and only works to set back automotive safety and jeopardize Tesla’s and the entire industry’s efforts to develop and implement lifesaving technology,” They said the plaintiffs concocted a story ”blaming the car when the driver – from day one – admitted and accepted responsibility.”
In addition to a punitive award of $200 million, the jury said Tesla must also pay $43 million of a total $129 million in compensatory damages for the crash, bringing the total borne by the company to $243 million.
“It's a big number that will send shock waves to others in the industry,” said financial analyst Dan Ives of Wedbush Securities. “It's not a good day for Tesla.”
Tesla said it will appeal.
Even if that fails, the company says it will end up paying far less than what the jury decided because of a pre-trial agreement that limits punitive damages to three times Tesla’s compensatory damages. Translation: $172 million, not $243 million. But the plaintiff says their deal was based on a multiple of all compensatory damages, not just Tesla’s, and the figure the jury awarded is the one the company will have to pay.
It’s not clear how much of a hit to Tesla’s reputation for safety the verdict in the Miami case will make. Tesla has vastly improved its technology since the crash on a dark, rural road in Key Largo, Florida, in 2019.
But the issue of trust generally in the company came up several times in the case, including in closing arguments Thursday. The plaintiffs’ lead lawyer, Brett Schreiber, said Tesla’s decision to even use the term Autopilot showed it was willing to mislead people and take big risks with their lives because the system only helps drivers with lane changes, slowing a car and other tasks, falling far short of driving the car itself.
Schreiber said other automakers use terms like “driver assist” and “copilot” to make sure drivers don’t rely too much on the technology.
“Words matter,” Schreiber said. “And if someone is playing fast and lose with words, they’re playing fast and lose with information and facts.”
Schreiber acknowledged that the driver, George McGee, was negligent when he blew through flashing lights, a stop sign and a T-intersection at 62 miles an hour before slamming into a Chevrolet Tahoe that the couple had parked to get a look at the stars.
The Tahoe spun around so hard it was able to launch Benavides 75 feet through the air into nearby woods where her body was later found. It also left Angulo, who walked into the courtroom Friday with a limp and cushion to sit on, with broken bones and a traumatic brain injury.
But Schreiber said Tesla was at fault nonetheless. He said Tesla allowed drivers to act recklessly by not disengaging the Autopilot as soon as they begin to show signs of distraction and by allowing them to use the system on smaller roads that it was not designed for, like the one McGee was driving on.
“I trusted the technology too much,” said McGee at one point in his testimony. “I believed that if the car saw something in front of it, it would provide a warning and apply the brakes.”
The lead defense lawyer in the Miami case, Joel Smith, countered that Tesla warns drivers that they must keep their eyes on the road and hands on the wheel yet McGee chose not to do that while he looked for a dropped cellphone, adding to the danger by speeding. Noting that McGee had gone through the same intersection 30 or 40 times previously and hadn’t crashed during any of those trips, Smith said that isolated the cause to one thing alone: “The cause is that he dropped his cellphone.”
The auto industry has been watching the case closely because a finding of Tesla liability despite a driver’s admission of reckless behavior would pose significant legal risks for every company as they develop cars that increasingly drive themselves.
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04 August 20256 min readJury Orders Tesla To Pay More Than $240 Million In Autopilot Crash Case
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04 August 2025
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