<div id="readability-page-1"><div> By Yang Jie and Sherry Qin <pre></pre> Foxconn Technology Group's shares surged Friday as its chairman outlined a push into next-generation technology critical for the artificial‑intelligence infrastructure buildout. The Taiwanese company, which supplies Nvidia with AI servers, is in the process of scaling up production of co-packaged optics, or CPO, a data-transmission technology produced by only a handful of manufacturers worldwide at scale. Shares of Foxconn, formally known as Hon Hai Precision Industry, jumped 9.9% on Friday in Taipei, close to the 10% daily limit. The benchmark Taiex index ended 2.5% higher. Speaking at an annual shareholders meeting, Foxconn's chairman, Young Liu, said the company plans to ship about 10,000 CPO switches this year to meet client demand for massive AI builds. Next year, output is expected to multiply, he added. As AI workloads push electrical links to their limits, data-center operators are seeking faster, more power‑efficient optical connections. That has made CPO one of the most closely watched technologies in the AI infrastructure stack. CPO places high-speed optical connections directly inside switching hardware, replacing traditional pluggable transceivers to deliver faster data throughput and lower power use. Analysts expect CPO to be pushed further into the spotlight as AI giants like Nvidia incorporate optical technologies into future AI-networking systems and chipmakers like TSMC support the advanced packaging work needed to produce them at scale. Continued demand from cloud service providers is set to further underpin Foxconn's outlook, Liu said. After topping $700 billion this year, spending by major cloud providers could rise to $1 trillion in 2027, the chairman said. &#34;Their capital expenditure is our market,&#34; Liu said, adding that this gives Foxconn great confidence in future growth. <pre></pre> Write to Yang Jie at jie.yang@wsj.com and Sherry Qin at sherry.qin@wsj.com <pre></pre> (END) Dow Jones Newswires May 29, 2026 02:15 ET (06:15 GMT)Copyright (c) 2026 Dow Jones &amp; Company, Inc.</div></div>

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Foxconn's shares rose 9.9% as the company plans to expand into next-gen AI technology, specifically co-packaged optics (CPO) for data transmission. Chairman Young Liu announced plans to ship 10,000 CPO switches this year, with output expected to increase next year. The demand for faster, power-efficient optical connections in AI infrastructure is driving this growth, with cloud providers' spending projected to reach $1 trillion by 2027.

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Foxconn Shares Jump as It Plans Push Into Next-Gen AI Tech