Nvidia-Partner Foxconn Forms Pact With Taiwan’s Teco for AI Push

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.

The Nvidia Corp. and Apple Inc. manufacturing partner will take a 10% stake in its smaller Taiwanese peer, which will in turn obtain a holding of less than 1% in Hon Hai, the companies said in a joint media briefing in Taipei on Wednesday. Each company will issue new shares to execute the swap.

The deal underscores Hon Hai’s ambitions to venture beyond iPhones — which make up much of ...