Foxconn, the world’s largest electronics contract manufacturer, has announced a partnership with Nvidia to build AI factories globally, revolutionizing the manufacturing industry. The Taiwanese company aims to replicate its success in assembling Apple’s iPhones as it expands into manufacturing electric vehicles for other firms.
Foxconn and Nvidia will jointly build a new kind of data center using Nvidia’s chips and software. These AI factories will utilize artificial intelligence technology for a range of applications, including self-driving cars. Foxconn Chairman Liu Young-way and Nvidia CEO Jensen Huang revealed their plans during Foxconn’s annual tech showcase in Taipei.
Huang described the emergence of a new type of manufacturing, focused on the production of intelligence. He referred to the data centers that produce this intelligence as AI factories. Huang expressed confidence in Foxconn’s expertise and scale to construct these factories globally.
At the event, Huang shared a hand-drawn sketch illustrating how these AI factories could be applied to a fleet of autonomous vehicles. He explained that the vehicles would collect data as they operate, which would then be sent to the AI factory. The AI factory would continuously improve the software and update the entire fleet of vehicles. Huang predicts that in the future, every company and every industry will have AI factories.
Nvidia, the world’s most valuable semiconductor company, stated that the AI factories will be based on its accelerated computing platform, including the next-generation GH200 superchip. It’s important to note that certain restrictions prevent the sale of this superchip to mainland China.
This collaboration follows a previous partnership announcement between Foxconn and Nvidia in January, in which they aimed to develop autonomous vehicle platforms. Under this agreement, Foxconn would manufacture electronic control units for cars based on Nvidia’s DRIVE Orin system-on-a-chip.
Liu, alongside Huang, expressed Foxconn’s ambition to transform itself from a manufacturing service company into a platform solution company. They highlighted smart cities and smart manufacturing as additional applications for AI factories.
Although Foxconn’s shares closed down 0.9% on the day of the announcement, the partnership with Nvidia demonstrates their dedication to embracing new opportunities in emerging technologies. With their combined expertise, Foxconn and Nvidia aim to lead the way in AI-driven manufacturing, potentially reshaping the industry as a whole.
