Foxconn Is Teaming Up With Nvidia To Build ‘AI Factories’

Foxconn, the world’s biggest contract electronics manufacturer in Taiwan, and Nvidia, a leading chip company, are teaming up to create a special data center for various uses, such as self-driving cars. They made this announcement during Foxconn’s annual tech event in Taipei.

Both companies are planning to build what they call “AI factories.” These factories will use Nvidia’s chips and software to gather and process data from self-driving cars, making them smarter. Nvidia can’t sell its cutting-edge GH200 super chip in China due to export restrictions.

“A new type of manufacturing has emerged – the production of intelligence. And the data centers that produce it are AI factories,” Huang said, adding that Foxconn had the expertise and scale to build them globally.

Nvidia’s shares have performed exceptionally well in 2023, mainly because its chips are essential for AI applications. Foxconn, famous for making Apple’s iPhones, aims to achieve similar success in making electric vehicles (EVs) for other companies.

“This car would of course go through life experience and collect more data. The data would go to the AI factory. The AI factory would improve the software and update the entire AI fleet,” said the Taiwan-born Huang. “In the future, every company, every industry, will have AI factories.”

Foxconn and Nvidia had previously partnered to develop autonomous vehicle technology. In this collaboration, Foxconn manufactures electronic control units (ECUs) for cars using Nvidia’s DRIVE Orin chip.

Foxconn is transitioning from being just a manufacturing service provider to becoming a platform solution company. They are exploring various applications for AI factories, including smart cities and smart manufacturing.

During their tech event, Foxconn also revealed a new electric cargo van called Model N, which is part of their ambitious EV push. They plan to capture 5% of the global EV market and generate $33 billion in revenue from making EVs and components by 2025. Their long-term goal is to produce nearly half of the world’s EVs.

While Foxconn’s founder, Terry Gou, now an independent candidate for Taiwan’s president, did not attend the event this year, the company’s shares experienced a slight drop on the stock market.

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