Foxconn factory in San Jerónimo, Mexico
Foxconn executives said on Tuesday that the company is building the world's largest Nvidia GB200 chip manufacturing plant in Mexico. It is known that the GB200 is a superchip based on Nvidia's next-generation artificial intelligence (AI) chip architecture, Blackwell.
Foxconn is the world's largest electronics contract manufacturer and also the largest assembler of Apple's iPhone. Foxconn has been benefiting from the AI boom as it assembles servers used to handle AI workloads.
Benjamin Ting, senior vice president of Foxconn's Cloud Enterprise Solutions Business Group, said, "We are building the world's largest GB200 production facility."
Nvidia said in August that after adjusting the design, it has started shipping samples of Blackwell chips to partners and customers and expects these chips to bring in billions of dollars in revenue in the fourth quarter.
Ting said the cooperation between Foxconn and Nvidia is very important and there is "very huge demand" for the Blackwell platform in the market.
Foxconn Chairman Liu Young-way then said the factory is being built in Mexico and the production capacity will be "very, very huge." He did not disclose more details.
Foxconn has already established a large production base in Mexico and has invested more than $500 million in Chihuahua so far.
Liu Young-way also said that Foxconn's supply chain is ready for the AI revolution and added that its manufacturing capabilities include "advanced liquid cooling and heat dissipation technologies needed to perfect the GB200 server infrastructure."
He said the company's outlook for the current quarter is strong but did not give details. Due to strong demand for AI servers, Foxconn's revenue in the third quarter reached an all-time high.
Foxconn also hopes to use its technical expertise to provide electric vehicle contract manufacturing services and produce cars using Foxconn-branded models.
Despite the increasingly fierce competition in the global electric vehicle market amid slowing demand, Liu Young-way said Foxconn is committed to the industry.
"This is the right direction and we will continue to work in this direction," he said. He added that with the development of electric vehicles, there is no longer an "engine barrier" in the automotive manufacturing industry.
He also said that car manufacturers "no longer need to manufacture the entire vehicle by themselves."
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