Taiwan’s Foxconn and Nvidia, two leading names in semiconductors and processor industries, have unveiled plans to construct advanced artificial intelligence data factories powered by Nvidia chips and software. The joint announcement was made during Foxconn’s annual Tech Day event in Taipei.
Foxconn Chairman Liu Young-way and Nvidia CEO Jensen Huang introduced their innovative endeavor, describing it as an “AI factory” that transforms data inputs into intelligence outputs. Huang envisions these AI factories becoming standard across industries, suggesting that every company will eventually possess its own AI factory.
What does the Foxconn and NVIDIA Partnership Signify?
The primary objective of this partnership is to create a comprehensive AI system tailored for autonomous electric vehicles. The AI factories will play a pivotal role in developing software for self-driving cars.
As these vehicles accumulate real-world experience and data, the AI factory will continuously enhance the software, leading to updates for the entire autonomous vehicle fleet. Huang, who hails from Taiwan, emphasized the widespread significance of AI factories, envisioning their presence in every sector.
Nvidia, the world’s most valuable chip company, is set to provide its cutting-edge GH200 superchip, although it is restricted from selling it in China due to U.S. export restrictions. This collaboration follows recent export restrictions that have affected Nvidia’s sales of high-end AI chips tailored for the Chinese market.
What is Foxconn Known For?
Foxconn, renowned as the largest supplier of Apple’s iPhones, seeks to replicate its success in manufacturing personal computers and smartphones as it expands its operations into the electric vehicle market. In January, Foxconn and Nvidia revealed their partnership to develop autonomous vehicle platforms, where Foxconn would manufacture electronic control units (ECUs) based on Nvidia’s DRIVE Orin chip.
Foxconn’s ultimate objective is a transition from a manufacturing service company to a platform solution provider, with AI factories poised to play a pivotal role in smart cities and innovative manufacturing applications. The company also introduced a new electric cargo van, Model N, as part of its ambitious electric vehicle expansion plans.
What Will This Partnership Translate Into in the Future?
Foxconn is actively engaging with 14 potential customers, including India and Japan, as promising markets for electric vehicle development. While the initial target is capturing 5% of the global electric vehicle market and generating $33 billion in revenue from EV manufacturing and components by 2025, Foxconn’s long-term aspiration is to produce nearly half of the world’s electric vehicles.
Foxconn’s Tech Day event coincided with the birthday of its founder, Terry Gou, who, notably, is running as an independent candidate for Taiwan’s presidential elections in January. Although Gou did not appear at this year’s event, it remains evident that Foxconn is driving forward with its vision for the future of technology and manufacturing.