Foxconn, the Taiwanese electronics manufacturing giant, has adopted hyperconverged infrastructure from Singaporean start-up Arcfra to replace VMware in some remote offices and to handle GPU virtualisation workloads, including AI. The move is significant because it makes Foxconn another high-profile defector from VMware since owner Broadcom overhauled its licensing and product strategy, joining other large organisations such as Tesco, Western Union and Allstate Insurance that have also moved away from the platform.

Arcfra, which launched in 2024 and was named in Gartner's Market Guide for Full-Stack HCI Software the following year, recently updated its Neutree model-as-a-service platform with native GPU virtualisation and model governance features. According to a case study Arcfra shared, Foxconn's branch companies had found their legacy VMware and SAN storage set-up costly and difficult to scale, and it has now deployed Arcfra across factories in mainland China, Taiwan, Vietnam and North America, using it for intranet, ERP, manufacturing management, production line systems, DevTest environments and virtual desktops. Foxconn did not respond to requests for further comment, while Broadcom separately announced a $200 billion chip and memory supply deal with Samsung.