Foxconn has announced the construction of the largest manufacturing facility in the world for the assembly of Nvidia’s GB200 superchips in Mexico. This superchip is a vital component of Nvidia’s upcoming Blackwell family of computing platforms, according to senior executives from the Taiwanese manufacturer.
Known as the largest contract electronics manufacturer and the primary assembler for Apple’s iPhones, Foxconn is capitalizing on the recent surge in Artificial Intelligence (AI) demands, specifically in the assembly of servers that facilitate AI processing.
Benjamin Ting, Foxconn’s senior vice president for the cloud enterprise solutions business group, stated, “We’re building the largest GB200 production facility on the planet.”
Nvidia has indicated that it began shipping samples of its Blackwell chips to partners and customers in August after making design modifications. The company anticipates generating several billion dollars in revenue from these chips in the upcoming fourth quarter.
Ting highlighted the significance of the collaboration between Foxconn and Nvidia, noting the overwhelming demand for the Blackwell platform. “The demand is awfully huge,” he remarked during the company’s annual tech presentation in Taipei, alongside Nvidia’s vice president for AI and robotics, Deepu Talla.
In a subsequent conversation with reporters, Foxconn Chairman Young Liu confirmed that the new facility is being established in Mexico and emphasized the enormous capacity of this operation, though he did not provide further specifics.
Foxconn has already established a substantial manufacturing footprint in Mexico, having invested over $500 million in the state of Chihuahua to date.
Liu also mentioned that the company’s supply chain is well-prepared for the AI transformation, boasting manufacturing capabilities equipped with “advanced liquid cooling and heat dissipation technologies” suitable for the GB200 server infrastructure.
The outlook for Foxconn in the current quarter appears strong, although Liu refrained from sharing detailed projections. Recently, the company reported its record revenue for the third quarter, attributed to the robust demand for AI servers.
Addtionally, Foxconn is pursuing ambitious strategies to diversify its business beyond manufacturing consumer electronics for Apple. The company aims to leverage its technological expertise to expand into electric vehicle (EV) contract manufacturing and produce vehicles utilizing models from its Foxtron brand.
When addressing the intense competition in the global EV market amidst waning demand, Liu reiterated Foxconn’s dedication to the sector. “It is the right direction and we will continue to work hard towards that,” he asserted, noting that the barriers to car manufacturing, such as the necessity for automakers to produce complete vehicles independently, have diminished.
Automakers now have the flexibility to partner with manufacturers like Foxconn, he added.
© Thomson Reuters 2024
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