Foxconn to Build Largest Manufacturing Facility for Nvidia’s AI Chip

Taiwanese contract manufacturer Hon Hai Precision Industry Co. Ltd., better known as Foxconn, is gearing up to build the largest manufacturing facility dedicated to producing Nvidia Corp.’s powerful GB200 chip. This ambitious project is driven by the soaring demand for Nvidia’s Blackwell platform, the latest advancement in AI technology.

Foxconn, a leading assembler of products for companies like Apple Inc., is capitalizing on the AI boom by venturing into server production. Benjamin Ting, Foxconn’s senior vice president for cloud enterprise solutions, emphasized the crucial partnership with Nvidia during Foxconn’s annual tech day in Taipei. “We’re building the largest GB200 production facility on the planet,” Ting declared, although he declined to disclose the location.

The demand for Nvidia’s Blackwell platform is undeniable. Deepu Talla, Nvidia’s vice president for AI and robotics, corroborates this statement. Foxconn Chairman Young Liu affirmed that the company’s supply chain is fully prepared for the AI revolution. Liu also highlighted Foxconn’s cutting-edge liquid cooling and heat dissipation technologies, which are essential for supporting the GB200 server infrastructure.

The construction of this massive facility comes at a critical juncture for Nvidia. The company is currently navigating the challenges posed by U.S. sanctions against China, which have impacted its business. Nvidia CEO Jensen Huang has acknowledged the impact of these sanctions, emphasizing the need to balance national security with technological advancement.

Nvidia’s Blackwell GPU platform is setting new standards in AI, with over 100 system configurations, according to a JPMorgan analyst. This positions Nvidia for a strong fiscal fourth quarter despite earlier product yield issues. Meanwhile, Foxconn has reported record revenues driven by the strong demand for AI servers. The company’s focus on AI technology aligns with its strategic goals, as it seeks to capitalize on the burgeoning AI market.

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