TAIPEI (Reuters) -Taiwan's Foxconn said its board of directors has approved an investment plan to procure equipment for a AI compute cluster and a supercomputing centre, that will allow it to spend up to NT$42 billion ($1.37 billion).

The investment will be made from December 2025 to December 2026 using its own funds, the company said in a filing published late on Monday.

Foxconn said the purpose of the plan is "to expand the cloud compute service platform and accelerate the development of the Group's three smart platforms." It did not elaborate or say where the investment would be made.

The world's largest contract electronics maker, also known as Hon Hai Precision Industry Co Ltd, has been stepping up its investments in artificial intelligence and cloud infrastructure as it seeks new growth drivers beyond smartphones and traditional electronics manufacturing.

In May, the company announced it would build an artificial intelligence centre with Nvidia ( NVDA ) in Taiwan targeted to have 100 megawatts of power.

In August, the company said it plans to manufacture data centre equipment with Japan's SoftBank at the Taiwanese firm's former electric vehicle factory in Ohio, part of the Stargate project to advance U.S. artificial intelligence infrastructure.