Global AI Server Assembly Boosted by Foxconn’s New Facility
Foxconn, recognized as the largest contract electronics manufacturer globally and a key player in Apple’s supply chain, is now enhancing its position in the artificial intelligence (AI) sector. The company is constructing what will be the largest facility dedicated to the assembly of Nvidia’s GB200 superchips, crucial for the American company’s next-generation Blackwell computing platforms. Benjamin Ting, Foxconn’s Senior Vice President for the Cloud Enterprise Solutions Business Group, revealed at the company’s annual tech day that this facility will set a new global standard for production capacity.
Strategic Location and Partnerships
The new plant is slated for construction in Guadalajara, Mexico, a city already familiar with tech manufacturing landscapes. This strategic move leverages existing relationships and infrastructure to scale up production swiftly. Nvidia, which began shipping Blackwell samples to partners this August after finalizing design enhancements, anticipates substantial revenue from these chips by year-end. Foxconn’s partnership with Nvidia is expected to meet the soaring demand for these advanced AI chips, underscored by the presence of Nvidia’s Vice President for AI and Robotics, Deepu Talla, who appeared alongside Ting during the announcement.
Future Forward: Beyond Electronics Toward EVs
Foxconn is not only cementing its role in the AI revolution but also aggressively pursuing diversification. Beyond its traditional manufacturing, the company is pushing into the electric vehicle (EV) market with its Foxtron brand. Despite the challenges of a competitive EV landscape, Foxconn Chairman Young Liu is optimistic about breaking barriers in traditional car manufacturing. The company has already invested over $500 million in Chihuahua, Mexico, enhancing its capabilities with advanced cooling technologies essential for high-performance AI servers. This expansion is part of a broader strategy to pivot from its primary focus on consumer electronics to include high-tech manufacturing solutions across various sectors.
