At a crucial moment when artificial intelligence is moving from cloud computing to real-world applications, Foxconn announced a strategic partnership with enterprise application software provider SAP at GTC 2026. The two companies will combine Foxconn's strengths in AI computing power and hardware manufacturing with SAP's expertise in enterprise applications and business AI to accelerate the adoption of next-generation enterprise AI in the Asia-Pacific region and jointly promote the vision of "AI-driven manufacturing" and intelligent supply chain management.
The AI Factory Evolves Again: The Last Mile from Computing Power to Application
This collaboration is based on Foxconn's ongoing "AI Factory" initiative. Foxconn Chairman Liu Yangwei stated, "Our strategic partnership with SAP is an important step towards realizing our vision of intelligent and AI-driven manufacturing. By combining Foxconn's AI computing power with SAP's expertise in enterprise applications, we are committed to solving one of the most complex challenges currently facing global industries."
For Foxconn, the concept of an AI factory extends beyond the automation of hardware manufacturing; it encompasses comprehensive intelligence, from supply chain management and production process optimization to global strategic decision-making. The addition of SAP means that Foxconn will be able to deeply integrate and analyze its massive manufacturing and operational data through SAP's enterprise-grade AI platform, thereby achieving true "data-driven decision-making."
SAP's Physical AI Strategy: From the Office to the Factory
SAP CEO Christian Klein highlighted the strategic importance of this collaboration within their overall operations. He stated, "AI is developing at an unprecedented pace. Our partnership with Foxconn represents a powerful opportunity to accelerate the adoption of AI by businesses across the Asia Pacific region. Together, we are helping organizations leverage technology to improve operational efficiency and effectiveness, enabling them to scale with greater confidence during their AI-driven transformation."
It's worth noting that both parties specifically mentioned exploring SAP's "Physical AI." This means that SAP's enterprise software capabilities will no longer be limited to office-based finance, human resources, or customer relationship management, but will be more deeply integrated with IoT devices, robots, and production line control systems at Foxconn's factories. When AI can understand the workings of the physical world and make real-time adjustments, the resilience and efficiency of the manufacturing industry will experience a revolutionary breakthrough.
The strategic significance of choosing GTC 2026 as the launch stage
The timing of this collaboration announcement during NVIDIA GTC 2026 carries significant symbolic meaning. GTC is a leading global event for AI and accelerated computing, and the joint statement from Foxconn and SAP not only announces their partnership to enter the enterprise AI market but also hints at a key role that NVIDIA's computing platform will play in future collaborations.
For Foxconn, the partnership with SAP is a crucial step in its transformation from "manufacturing OEM" to "smart manufacturing OEM." Foxconn, previously known for its efficiency and scale, now aims to package its AI computing power and data analytics capabilities into standardized services for global clients. SAP, with tens of thousands of large enterprise clients worldwide, is poised to set a new benchmark for AI transformation in the manufacturing industry.
