Foxconn, the world’s largest contract electronics manufacturer, is partnering with Nvidia to build advanced data centers known as “AI factories” using Nvidia chips and software. The collaboration, announced at Foxconn’s annual tech showcase in Taipei, aims to leverage artificial intelligence (AI) for various applications, including self-driving cars.
Nvidia’s CEO, Jensen Huang, and Foxconn’s Chairman, Liu Young-way, presented the initiative at the event, emphasizing the emergence of a new type of manufacturing focused on intelligence. These AI factories will process data from autonomous vehicles continuously, improving their performance and capabilities over time.
Huang explained how data from autonomous vehicles could be collected and sent to the AI factories for analysis and software updates, making the entire fleet smarter. He envisioned a future where AI factories would become integral to every company and industry.
Nvidia, recognized as the world’s most valuable chip company, will provide the chips and software for these AI factories, including its cutting-edge GH200 superchip. Notably, the GH200 superchip is restricted from sale in China due to new U.S. export restrictions, which were announced earlier.
Foxconn, known for its role as a major supplier of Apple’s iPhones, seeks to replicate its success in manufacturing personal computers and smartphones in the electric vehicle (EV) sector. In January, Foxconn and Nvidia announced a partnership to develop autonomous vehicle platforms, with Foxconn manufacturing electronic control units based on Nvidia’s DRIVE Orin chip.
Liu, standing alongside Huang, highlighted Foxconn’s transformation from a manufacturing service company to a platform solution company, with AI factories applicable to various sectors, including smart cities and smart manufacturing.
Foxconn also introduced its new electric cargo van, Model N, as part of its growing presence in the EV industry. The company is in discussions with 14 potential customers, with a focus on India and Japan as promising markets for EV development. Foxconn aims to capture 5% of the global EV market by 2025, with more ambitious long-term goals of producing nearly half of the world’s EVs.
Foxconn’s Tech Day coincides with the birthday of its founder, Terry Gou, who is currently running as an independent candidate for Taiwan’s presidency. Gou did not appear at the event, unlike the previous year when he drove a prototype EV on stage.
Foxconn’s shares experienced a 0.9% decline on the day of the announcement, compared to a 1.2% decrease in the broader market.