Hon Hai Precision Industry Co. formed a strategic alliance with Teco Electric & Machinery Co., a pact that should help the iPhone-assembler advance its push into artificial intelligence hardware.

Taiwanese company Hon Hai Technology Group (Foxconn) and TECO Electric & Machinery have announced a strategic share-swap alliance aimed at enhancing their infrastructure capabilities and ability to jointly compete in the global AI infrastructure field, the former said in a release.

Taiwan's Foxconn , the world's largest contract electronics maker, will form a strategic partnership with industrial motor maker TECO Electric & Machinery to boost development in the AI data centre market,