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Foxconn and Nvidia Join Forces to Construct 'AI Factories'

Updated: Jan 8

Taiwan's Foxconn, the world's largest contract electronics manufacturer, has announced a partnership with Nvidia to build innovative data centers known as "AI factories."

Nvidia and Foxconn
Credits: REUTERS

The collaboration aims to utilize Nvidia's chips and software to develop cutting-edge applications, including self-driving cars. Foxconn Chairman Liu Young-way and Nvidia CEO Jensen Huang unveiled their plans at Foxconn's annual tech showcase in Taipei.

Huang emphasized the emergence of a new era in manufacturing, where intelligence takes center stage. He described the AI factories as data centers that continuously receive and process information from autonomous vehicles, enabling them to become smarter over time. Huang expressed his belief that every company and industry will eventually have AI factories.

Nvidia, renowned for its valuable chip technology, will provide its chips and software for the AI factories. Notably, the GH200 superchip, which is restricted from sale in China, will be utilized in these facilities. This announcement follows Nvidia's recent disclosure that new U.S. export restrictions will also prevent the sale of two high-end AI chips in China.

The partnership between Foxconn and Nvidia extends beyond AI factories.

In January, the companies announced a collaboration to develop autonomous vehicle platforms. Foxconn will manufacture electronic control units (ECUs) based on Nvidia's DRIVE Orin chip for global distribution. Foxconn, known for its role as a major supplier of Apple's iPhones, aims to replicate its success in the assembly of personal computers and smartphones as it expands into the electric vehicle market.

During the event, Foxconn also unveiled its latest prototype in the electric vehicle sector, the Model N electric cargo van. The company's ambitious goals include capturing 5% of the global EV market by 2025 and becoming a leading player in EV manufacturing. Foxconn's EV business head, Jun Seki, revealed that the company is in talks with 14 potential customers and sees India and Japan as promising markets for EV development.

While Foxconn's founder, Terry Gou, did not attend the event, his vision of transforming the company from a manufacturing service provider to a platform solution company was reiterated by Chairman Liu. The concept of AI factories extends beyond self-driving cars, with applications in smart cities and smart manufacturing.

  • Foxconn and Nvidia have partnered to build AI factories, utilizing Nvidia's chips and software.

  • The AI factories will focus on applications such as self-driving cars.

  • Nvidia's GH200 superchip, restricted in China, will be used in the AI factories.


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