Foxconn is set to begin producing AI servers at its facilities in India, marking a significant expansion of its operations in the country.

Known primarily for assembling Apple’s iPhone, the Taiwanese contract manufacturing giant is now looking to diversify its manufacturing capabilities.

According to a report by the Economic Times which quoted multiple sources familiar with the matter, Foxconn will use its existing facilities in Tamil Nadu to manufacture AI servers. These high-performance computing engines are essential for training and running artificial intelligence models. Foxconn, which already manufactures AI servers for major global tech companies like Amazon, Google, Microsoft, and NVIDIA, sees this move as a strategic expansion.

Foxconn can make pretty much anything since they are contract manufacturers, said one source. “It could be phones, servers, or EV components. They are very nimble that way and currently, servers are what they are bullish about.”