On July 30, 2025, Hon Hai Precision Industry Co., Ltd. (the parent company of Foxconn) and TECO Electric & Machinery Co., Ltd. jointly announced the establishment of a strategic alliance facilitated by a share swap. Under this arrangement, Foxconn will acquire a 10% stake in TECO Electric & Machinery, while TECO Electric & Machinery will take approximately 0.519% of Foxconn's shares. This strategic partnership is centered on the AI server business, aiming to synergize the R&D, manufacturing, and industrial automation capabilities of both entities to bolster their market competitiveness. The Industrial and Commercial Bank of China, serving as the cornerstone for Foxconn's AI server business, stands to benefit significantly from this alliance. Market sentiment remains positive, evidenced by the surge of over 9% in the share price of Foxconn Interconnect Technology, a subsidiary of Foxconn, at one point.