Foxconn to Build World's Largest Nvidia Blackwell AI Chip Production Facility in Mexico

Foxconn to open Mexico plant for mass production of Nvidia Blackwell AI superchips

In a nutshell: Nvidia is expected to launch its Blackwell GPU architecture for AI workloads soon, and several high-profile customers have already placed orders to secure the new chips. To meet anticipated demand, Nvidia is partnering with Taiwanese manufacturer Foxconn to significantly boost availability in the coming months and beyond. Foxconn is expanding its manufacturing operations in Mexico with a new plant dedicated to Nvidia's Blackwell architecture, the recently unveiled GPU designed to accelerate AI and high-performance computing workloads. Foxconn Senior VP Benjamin Ting stated that the company is constructing the largest GB200 production facility in the world, aiming to meet the "massive" demand for AI accelerators in the near future. The plant will reportedly be built in Guadalajara, a Mexican government source confirmed. As the world's largest electronics contract manufacturer, Foxconn was selected by Nvidia as a key partner in bringing the Blackwell chip design to fruition. Foxconn Chairman Young Liu mentioned that the production capacity of the new plant will be "extremely large," though he did not provide specific details. Foxconn is best known as Apple's primary manufacturing partner, producing iPhones, iPads, and other devices. Its production lines also assemble other notable products, including PlayStation, Xbox, and Switch gaming consoles, as well as Amazon Kindle e-readers. Foxconn's next step in its diversification plan focuses on AI. Chairman Young Liu confirmed that the enhanced manufacturing capabilities at the new Mexico facility will support the production of advanced cooling solutions required for the GB200 server infrastructure. Nvidia has hailed Blackwell as the "spark" of a new industrial revolution, with technology specifically designed to accelerate AI workloads, reduce inefficiencies and downtimes, and optimize energy consumption. The GB200 NVL72 platform will also power an upcoming supercomputer that Nvidia and Foxconn plan to build in Taiwan. The Hon Hai Kaohsiung Supercomputing Center project, unveiled during Hon Hai Tech Day earlier this week, aims to bring online a high-performance computing system capable of delivering 90 exaflops of "AI performance" by 2026. Nvidia said the new supercomputer will be Taiwan's fastest computing infrastructure, with Foxconn managing AI-heavy HPC workloads. The system will be used for cancer research, AI model development, and smart city applications. Additionally, the project will support digital twins, robotic automation, smart urban infrastructure, and AI-assisted city services. The new AI supercomputer "is one of the most powerful in the world, representing a significant leap forward in AI computing and efficiency," Foxconn vice-president and spokesman James Wu said. The GB200 NVL72 data center platform is a rack-based infrastructure featuring 36 Nvidia Grace (Arm) CPUs, 72 Blackwell GPUs, and an NVLink connection capable of delivering 130TB/s of bandwidth.

Foxconn Building Nvidia Superchip Facility in Mexico, Executives Say

Foxconn is building in Mexico the world's largest manufacturing facility for bundling Nvidia's GB200 superchips, a key component of the US firm's next-generation Blackwell family computing platform, senior executives at the Taiwanese company said on Tuesday. Foxconn, the world's largest contract electronics manufacturer and known as Apple's biggest iPhone assembler, has been benefiting from the Artificial Intelligence (AI) boom as it assembles servers used to process AI work. "We're building the largest GB200 production facility on the planet," said Benjamin Ting, Foxconn senior vice president for the cloud enterprise solutions business group. Nvidia said in August that it had started shipping Blackwell samples to its partners and customers after tweaking its design, and expected several billion dollars in revenue from these chips in the fourth quarter. Ting said the partnership between his company and Nvidia was very important and everyone was asking for Nvidia's Blackwell platform. "The demand is awfully huge," Ting said at the company's annual tech day in Taipei, standing next to Nvidia's vice president for AI and robotics, Deepu Talla. Speaking to reporters later, Foxconn Chairman Young Liu said the plant was being build in Mexico, and that the capacity there would be "very, very enormous". He did not elaborate. Foxconn already has a large manufacturing presence in Mexico and has invested more than $500 million (roughly Rs. 4,197 crore) to date in the state of Chihuahua. Liu said the company's supply chain was ready for the AI revolution, adding its manufacturing capabilities include the "advanced liquid cooling and heat dissipation technologies necessary to complement the GB200 server's infrastructure." He said that the company's outlook in the current quarter was strong, though did not give details. On Saturday, Foxconn posted its highest-ever revenue for the third quarter on strong demand for AI servers. Foxconn's other focus is ambitious plans to diversify away from its role of building consumer electronics for Apple, hoping to use its tech know-how to offer EV contract manufacturing and also produce vehicles using models built by Foxtron brand. Asked about fierce competition in the global electric vehicle market amid slowing demand, Liu said Foxconn was committed to the sector. "It is the right direction and we will continue to work hard towards that," he said, adding that with the EVs, the "engine barrier" no longer exists in car manufacturing. Automakers "don't need to make the whole car themselves anymore", he said. © Thomson Reuters 2024

Foxconn builds Mexico plant for Nvidia as Chinese decoupling continues

Hon Hai Precision Industry Co., the world's largest electronics contract manufacturer, better known as Foxconn Technology, is set to expand its server production capacity in Mexico to meet 'crazy' demand for Nvidia's next-generation Blackwell GPUs and servers on its base, reports Bloomberg. The company's move indicates a strong belief that AI-related investments will continue to rise. Young Liu, chairman of Foxconn, told Bloomberg Television that demand for GB200-based NVL72 servers with 72 B200 GPUs for AI and HPC workloads had exceeded initial expectations and was 'crazy.' To that end, Foxconn is building one of the world's largest server assembly plants in Mexico, which will produce machines for companies in North America without relying on capacities in China, Taiwan, or Southeast Asia. The Taiwanese company has already invested over $500 million in its Mexican operations in Chihuahua, reports the South China Morning Post. Building an 'enormous' facility in Mexico (outside China, Taiwan, India, Malaysia, and Vietnam, where the company operates today) is primarily a strategic move for Foxconn. On the one hand, the company reduces its reliance on China (yet its largest plants where it builds iPhones remain in Tianxia). On the other hand, it expands its presence in North America, enabling it to build machines for the U.S. government and other customers who prefer not to use systems constructed in China. Once operational in 2025, the facility is expected to become the largest in the world for assembling motherboards and servers for Nvidia Blackwell-based servers. The plant's planned capacity is 20,000 servers, presumably per month, which means 240,000 machines per year. Because Nvidia's B200-based machines require liquid cooling, their assembly is more complex than an assembly of traditional servers, which is why both Foxconn and Supercmicro invented datacenter-scale liquid cooling solutions. Foxconn has reportedly been the only maker of Nvidia's compute GPU modules, such as the A100, H100, and H200. It is also a significant producer of HGX boards used by Nvidia and its server assembly partners. The company also produces AI server boards for other companies, including Amazon Web Services and Google, two large cloud service providers (CSPs) that develop their own AI processors. With additional capacity in Mexico, Foxconn will grab an even larger chunk of the AI server market. The Foxconn chairman acknowledged a production setback affecting Nvidia B200-based servers. Originally slated for launch in the early fourth quarter, shipments are now delayed to later in the quarter due to the necessity of redesigning the packaging of B100 and B200 processors. Young Liu addressed market concerns about potential saturation in AI computing needs, stating that current demand trends have surpassed Foxcoon's initial projections. This suggests that expectations for AI-related growth remain robust, with no signs of slowing down soon. Foxconn has been operating in Mexico for many years. The company has plants in San Jerónimo, Chihuahua, where it assembles computers. Juárez has two more facilities: one that previously belonged to Motorola, which now produces mobile phones and another set-top box factory obtained from Cisco Systems. Additionally, in Tijuana, Foxconn manufactures LCD televisions at a facility that Sony once owned.

Foxconn builds largest 'superchip' plant

AFP - Tech giant Foxconn said yesterday it is building the largest production plant for United States hardware leader Nvidia's GB200 "superchips" that power artificial intelligence (AI) servers. Foxconn, also known by its official name Hon Hai Precision Industry, is the biggest contract electronics manufacturer and assembles devices for major tech companies, including Apple. Ambitious to expand beyond electronics assembly, it has been pushing into areas ranging from electric vehicles to semiconductors and servers. "We're building the largest GB200 production facility on the planet," senior executive Benjamin Ting said at the company's annual 'Hon Hai Tech Day'. "I don't think I can say where now, but it's the largest on the planet," said Foxconn's senior vice president Ting for the cloud enterprise solutions business. Chairman Young Liu said while opening the two-day event that Foxconn would be "the first to ship these superchips". Liu later told reporters the new plant was in Mexico. Unlike its rivals Intel, Micron and Texas Instruments, Nvidia does not manufacture its own chips but uses subcontractors. Foxconn also unveiled new electric vehicle prototypes at the tech day - a seven-seater lifestyle multipurpose utility vehicle and a 21-seater bus. It plans to do with electric vehicles what it did for gadgets - become a go-to contract builder. Foxconn announced last year that it would team up with Nvidia to create "AI factories" - powerful data-processing centres that would drive the production of next-generation products.

Foxconn is moving past the iPhone with a Mexico mega-factory helping to make Nvidia chips

Foxconn and Apple's fates have been intertwined over the past decade, as the Taiwanese electronics assembler churned out iPhones and iPads for customers around the world. But now, the world's largest contract manufacturer is being recognized for more than just the iPhone. In August, the world's largest contract manufacturer reported that quarterly profits rose 6% year-on-year to reach 35 billion New Taiwan dollars ($1.1 billion). Revenue also rose to 1.55 trillion New Taiwan dollars ($48.1 billion). The reason? Foxconn's business making AI servers. The past year has been "all about artificial intelligence," Foxconn chairman Young Liu said in a pre-recorded opening speech before he went on stage at the company's annual Tech Day, on Oct. 8 in Taipei. That same day, Foxconn revealed it was making the world's largest production facility for the GB200, a key component of Nvidia's next-generation Blackwell computing platform. "Everyone is asking for Blackwell. The demand is awfully huge," Benjamin Ting, Foxconn's senior vice president for cloud enterprise solutions, told the Tech Day audience on Tuesday. Liu later told reporters the new Foxconn plant was planned to be built in Mexico. Foxconn controls about 40% of global market share for servers and its jump in AI revenue could be a case of "right place, right time," Kirk Yang, chairman of Kirkland Capital and longtime Foxconn watcher, says. The company could leverage both "years of server experience" and a close relationship working with Nvidia. Yet Yang thinks another of Foxconn's recent business ventures is a better bet for the company: electric cars. Foxconn, which has been in the EV business since 2019, officially unveiled two more EV prototypes this week. First is the Model D, a multipurpose utility vehicle, and the Model U, a "midi-sized" electric bus. Much like it does with consumer electronics, Foxconn plans to manufacture electric vehicles for existing car brands. Foxconn's EVs have yet to gain major traction in international markets, only winning corporate customers in its home base of Taiwan, and Yang warns it can take years to break into the auto supply chain. Yet the company's model of making goods for other brands may soon appeal to some overseas markets. "If we check the revenue for the new markets, EVs are still very promising," says Helen Chiang, who leads Asia semiconductor research, including automobile chips, for the market intelligence firm IDC. Car companies outside of China, like those in Japan, have been slower to transition to EVs and they might be attracted to Foxconn's offer of a ready-made, customizable model. Chiang said the growth in the EV market has slowed and some mainstream auto brands have slowed research and development for EVs, and she thinks it may be helpful for those companies to work with Foxconn and leverage the Taiwanese firm's strength in manufacturing and cost. Foxconn's EV division already has a Japan connection. Its chief strategy officer for EVs, Jun Seki, spent over three decades at Nissan and two years at Japanese electric motor manufacturer Nidec before moving to Foxconn in early 2023. Seki told Nikkei Asia Foxconn expects to sign manufacturing agreements with two Japanese automakers by the end of this year. Foxconn could also find success with commercial vehicles, rather than personal passenger cars. Chinese EVs could end up dominating the market for the latter, as fierce price competition at home leads to more affordable models overseas. "China players' focus is still on the consumer right now," Chiang says.

Nvidia supplier Foxconn to make Blackwell AI servers in Mexico

Electronics manufacturing group Foxconn is to build the world's largest factory making Nvidia's most advanced artificial intelligence servers in Mexico, in a stark illustration of how global technology supply chains are decoupling from China. The plant in the central Mexican city of Guadalajara will assemble GB200 Blackwell AI servers, Foxconn's chair Young Liu told customers and partners at Foxconn's annual technology showcase event in Taipei. There was still "crazy" demand for the Blackwell platform, Liu said at the event that was also attended by Nvidia's vice-president Deepu Talla, who gave few details of the 450m-long plant. Western governments and companies have sought for several years to bring manufacturing of sensitive technology products and critical supplies closer to their own territory, to reduce their dependency on China in the light of growing geopolitical tension and supply chain disruptions. Washington's effort to rebuild semiconductor manufacturing at home, with the help of multibillion-dollar subsidies, has triggered the largest investments by companies such as Taiwan Semiconductor Manufacturing Co, the world's largest chipmaker, and its rivals Intel and Samsung. Foxconn itself continues to operate several massive factory complexes in China, including the world's largest iPhone plant. The Taiwanese group is the world's largest contract electronics manufacturer, offering design, component manufacturing and assembly services spanning products from smartphones to industrial robots and electric vehicles. While Liu has said China's weight in the group's global manufacturing footprint will sink to just over 70 per cent, that transition has been slow as it long struggled to scale up low-end, labour-intensive assembly operations of smartphones in south-east Asia and elsewhere. Only over the past year has Foxconn accelerated its pace of investment in India, mainly for iPhone production. The shift in the production of servers and associated components has moved at a much faster pace because they are part of critical infrastructure in data centres for big cloud companies, such as Google and Amazon, and for governments. Driven by demands from big cloud services providers and a trade war unleashed by then US president Donald Trump, Foxconn and other big electronics contract manufacturers began moving server production out of China several years ago. Liu predicted that the rise of "sovereign AI" -- the need for nations to develop their own artificial intelligence to align with their national security interests -- would also lead to increasingly localised production of the servers needed. In addition to sovereign AI, "I would propose a 'sovereignty server' concept," he said. "Future server production will happen in the countries that require it. That is the direction we are seeing now."

Taiwan's Foxconn says building world's largest 'superchip' plant

Taipei (AFP) - Taiwanese tech giant Foxconn said on Tuesday it is building the world's largest production plant for US hardware leader Nvidia's GB200 "superchips" that power artificial intelligence servers. Foxconn, also known by its official name Hon Hai Precision Industry, is the world's biggest contract electronics manufacturer and assembles devices for major tech companies, including Apple. Ambitious to expand beyond electronics assembly, it has been pushing into areas ranging from electric vehicles to semiconductors and servers. "We're building the largest GB200 production facility on the planet," senior executive Benjamin Ting said at the company's annual "Hon Hai Tech Day". "I don't think I can say where now, but it's the largest on the planet," said Ting, Foxconn's senior vice president for the cloud enterprise solutions business. Chairman Young Liu said while opening the two-day event that Foxconn would be "the first to ship these superchips". Liu later told reporters the new plant was in Mexico. Unlike its rivals Intel, Micron and Texas Instruments, Nvidia does not manufacture its own chips but uses subcontractors. Foxconn also unveiled new electric vehicle prototypes at the tech day -- a seven-seater lifestyle multipurpose utility vehicle and a 21-seater bus. It plans to do with electric vehicles what it did for gadgets -- become a go-to contract builder. Foxconn announced last year that it would team up with Nvidia to create "AI factories" -- powerful data-processing centres that would drive the production of next-generation products.

Taiwan's Foxconn says building world's largest 'superchip' plant

Taiwanese tech giant Foxconn said on Tuesday it is building the world's largest production plant for US hardware leader Nvidia's GB200 "superchips" that power artificial intelligence servers. Foxconn, also known by its official name Hon Hai Precision Industry, is the world's biggest contract electronics manufacturer and assembles devices for major tech companies, including Apple. Ambitious to expand beyond electronics assembly, it has been pushing into areas ranging from electric vehicles to semiconductors and servers. "We're building the largest GB200 production facility on the planet," senior executive Benjamin Ting said at the company's annual "Hon Hai Tech Day". "I don't think I can say where now, but it's the largest on the planet," said Ting, Foxconn's senior vice president for the cloud enterprise solutions business. Chairman Young Liu said while opening the two-day event that Foxconn would be "the first to ship these superchips". Liu later told reporters the new plant was in Mexico. Unlike its rivals Intel, Micron and Texas Instruments, Nvidia does not manufacture its own chips but uses subcontractors. Foxconn also unveiled new electric vehicle prototypes at the tech day -- a seven-seater lifestyle multipurpose utility vehicle and a 21-seater bus. It plans to do with electric vehicles what it did for gadgets -- become a go-to contract builder. Foxconn announced last year that it would team up with Nvidia to create "AI factories" -- powerful data-processing centers that would drive the production of next-generation products.

Foxconn building world's largest Nvidia superchip factory

The logo of Nvidia is on display during the 2024 Hon Hai (Foxconn) Tech Day in Taipei, Taiwan, Oct. 8. EPA-Yonhap Foxconn is building the world's largest manufacturing facility making the Nvidia GB200 chip to help meet "awfully huge" demand for the AI darling's Blackwell platform, a senior executive at the Taiwanese company said on Tuesday. Foxconn, the world's largest contract electronics manufacturer and known as Apple's biggest iPhone assembler, has been benefiting from the artificial intelligence boom given it also makes servers. Benjamin Ting, Foxconn senior vice president for the cloud enterprise solutions business group, said the partnership between his company and Nvidia was very important. "We're building the largest GB200 production facility on the planet - I don't think I can say where now," Ting said at the company's annual tech day in Taipei. He said everyone was asking for Nvidia's Blackwell platform. "The demand is awfully huge," Ting said, standing next to Nvidia's vice president for AI and robotics, Deepu Talla. Nvidia CEO Jensen Huang appeared at Foxconn's tech day last year. Talla said Huang also wanted to attend this year but was not able to make it. Foxconn Chairman Young Liu said at the event the company's supply chain was ready for the AI revolution. Foxconn's manufacturing capabilities include the "advanced liquid cooling and heat dissipation technologies necessary to complement the GB200 server's infrastructure," Liu said. (Reuters)

Apple Supplier Foxconn To Build World's Largest Nvidia Superchip Factory Amid Soaring AI Demand - Apple (NASDAQ:AAPL), Hon Hai Precision (OTC:HNHPF)

Taiwanese contract manufacturer Hon Hai Precision Industry Co. Ltd. HNHPF the company, which is popularly called Foxconn is gearing up to construct the largest manufacturing facility for Nvidia Corp.'s NVDA GB200 chip. What Happened: This initiative is aimed at meeting the substantial demand for Nvidia's Blackwell platform, as revealed by a senior executive on Tuesday, Reuters reported. The Taiwanese electronics powerhouse, known for assembling products for Apple Inc AAPL, is seizing the artificial intelligence wave by also venturing into server production. Benjamin Ting, Foxconn's senior vice president for the cloud enterprise solutions business group, underscored the vital collaboration with Nvidia. "We're building the largest GB200 production facility on the planet - I don't think I can say where now," Ting stated during Foxconn's annual tech day in Taipei. He emphasized the high demand for Nvidia's Blackwell platform, alongside Nvidia's vice president for AI and robotics, Deepu Talla. See Also: Nvidia's New Superchip Delivers 8,470 Times The Computing Performance Of Supercomputer That Jensen Huang Donated To OpenAI Foxconn Chairman Young Liu confirmed that the company's supply chain is ready for the AI revolution. Liu also highlighted Foxconn's advanced liquid cooling and heat dissipation technologies, which are crucial for supporting the GB200 server infrastructure. Why It Matters: The construction of this massive facility comes at a time when Nvidia is facing challenges due to U.S. sanctions against China. Nvidia CEO Jensen Huang has discussed the impact of these sanctions on the company's business, emphasizing the importance of balancing national security with technological advancement. Additionally, Nvidia's Blackwell GPU platform is setting new benchmarks 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. Moreover, Foxconn has reported record revenues, driven by strong demand for AI servers. The company's focus on AI technology aligns with its strategic goals, as it aims to capitalize on the growing AI market. Read Next: Cathie Wood Predicts Trillion Dollar Revenue Opportunity For Tesla In Autonomous Vehicles: 'Winner-Takes-Most' In AI And Driving Tech Image Via Shutterstock This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote Market News and Data brought to you by Benzinga APIs

Foxconn and Nvidia to jointly build the world's largest GB2000 production line

Foxconn Technology Group officially launched its two-day Hon Hai Tech Day (HHTD) on October 8, featuring discussions on driving the next wave of industrial revolution in partnership with Nvidia. Benjamin Ting, General Manager of Foxconn's AI-focused subsidiary Ingrasys, emphasized Nvidia's status as a valuable partner. "Foxconn and Nvidia are building the world's largest GB200 production line, which will also incorporate mixed-reality technology," Ting said. He noted that both companies have been seeking a shared "passion" to accelerate their collaboration. Deepu Talla, Vice President of Nvidia's Robotics and Edge AI Division, commented on his long-standing relationship with Taiwan. "I have been coming to Taiwan for 15 years. In the past, people considered Taiwan a leader in hardware, but there was comparatively less focus on software. However, this year's COMPUTEX has shown that Taiwan offers not only solutions and systems but also the ability to integrate them all together." As Foxconn celebrates its 50th anniversary, Ting highlighted that it will continue to work alongside Nvidia to drive advancements in smart manufacturing, smart cities, and smart electric vehicles, leveraging the capabilities of the GB200 and Blackwell chip series.