Foxconn Sees AI Boom Driving 2026 Growth, Hints at OpenAI Collaboration

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Foxconn, the world’s largest contract electronics manufacturer and key supplier to Apple and Nvidia, projected strong growth from artificial intelligence (AI) demand heading into 2026 — and teased a major announcement with OpenAI next week.

Chairman Young Liu told investors on Wednesday that the AI industry was only in its early stages and would soon become a central driver of global technology growth.
“Judging from what we see now, I am very optimistic about the AI market next year,” Liu said during the company’s quarterly earnings call. “The development of AI is still just beginning.”

Foxconn’s cloud and networking division, which includes AI server manufacturing, has now surpassed its consumer electronics segment — which includes iPhones — for the second consecutive quarter.

The company expects significant year-on-year revenue growth in the fourth quarter, with AI server sales continuing to rise quarter-on-quarter. Third-quarter profit jumped 17% to T$57.67 billion ($1.89 billion), beating analyst expectations.

Liu also hinted at an OpenAI-related announcement to be revealed during Foxconn’s annual Tech Day in Taipei next week, but declined to provide further details. OpenAI has not yet commented on the matter.

Foxconn — formally known as Hon Hai Precision Industry — has benefited from a global data center expansion led by Amazon, Microsoft, and Google, as they ramp up investments in AI infrastructure.

Beyond AI, Foxconn continues to invest in electric vehicles (EVs), despite recent challenges in its EV manufacturing ventures in the U.S.

So far this year, Foxconn’s shares have risen 36%, outperforming Taiwan’s broader market index, which is up 21%.

Bank of England Eases Stablecoin Rules, Allowing Investment in Government Debt

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The Bank of England (BoE) has proposed a more flexible regulatory framework for stablecoins, allowing issuers to invest up to 60% of their backing assets in government debt, a move that marks a softer stance toward the rapidly growing digital asset sector.

The proposal, part of a package of rules expected to take effect next year, represents a shift from the BoE’s earlier, stricter approach, which required stablecoin issuers to hold all their reserves in non-interest-bearing central bank accounts — a move that critics said would have stifled the industry’s development in the UK.

The new plan reduces that requirement to 40%, allowing the remaining portion to be invested in interest-bearing assets such as short-term government securities.

“Today’s proposals mark a pivotal step towards implementing the UK’s stablecoin regime next year,” said Sarah Breeden, the BoE’s deputy governor for financial stability. “We’ve listened carefully to feedback and amended our proposals for achieving this, including on how stablecoin issuers interact with the Bank of England.”

The central bank confirmed it will supervise only those stablecoins intended for widespread payment use, while non-systemic tokens — those primarily used for crypto trading — will fall under the Financial Conduct Authority (FCA).

However, the BoE maintained its plan to cap holdings at £20,000 ($26,842) for individuals and £10 million for businesses, though large firms such as supermarkets or exchanges could apply for exemptions. The bank said these limits would be temporary, designed to mitigate potential financial stability risks.

In a further step, the BoE is also considering providing liquidity facilities to systemic stablecoin issuers during times of market stress.

Crypto industry figures welcomed the more balanced approach but urged further relaxation. Tom Duff Gordon, vice president of international policy at Coinbase, said the BoE “could have allowed up to 80% of assets to be invested in government bonds” and called for “clearer timelines” on when the caps would be lifted.

The consultation period for the proposals runs until February 10, 2026.

Ukraine’s Kyivstar Boosts Backup Power as Russian Strikes Threaten Energy Grid

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Ukraine’s largest mobile operator Kyivstar is stepping up efforts to keep its telecommunications network running as renewed Russian attacks on energy infrastructure put mounting strain on the country’s fragile power grid, CEO Oleksandr Komarov told Reuters on Monday.

“Right now, we have more than 3,500 stationary generators connected to the network in real time,” Komarov said. “But the pressure on the energy infrastructure is also growing… The only answer we have is to increase the number of generators connected to the network.”

Russia’s latest barrage of drones and missiles on Saturday targeted nuclear substations and other critical energy sites, killing seven people. State-owned energy firm Tsentrenergo described it as the largest attack on its facilities since the war began in 2022.

Since the start of the invasion, Kyivstar has worked to harden its network against power outages. Core systems now have backup power for up to three days, while more than 90,000 connection boxes in apartment buildings are equipped with solutions that allow them to function for 10–12 hours during blackouts.

The upgrades are part of Kyivstar’s broader resilience plan to ensure continuity of service across Ukraine despite recurring infrastructure damage.

Meanwhile, Kyivstar — which became the first Ukrainian company listed on a U.S. stock exchange in August — continues to navigate geopolitical and market volatility.

Komarov said U.S. institutional investors see the company as “significantly undervalued” given the wartime context, while Veon, Kyivstar’s parent company, is working with Ukrainian authorities to enable local investors to buy shares.

Earlier Monday, Kyivstar reported a 20% increase in third-quarter revenue to $297 million, supported by steady macroeconomic conditions and international support that have helped stabilize Ukraine’s currency.