Foxconn Joins Hands with Nvidia to Build AI Factories

Foxconn Joins Hands with Nvidia to Build AI Factories

Two chip-making giants – Foxconn and Nvidia Corp (NASDAQ: NVDA) – have finally come together to build “AI factories” and data centers for a range of applications including self-driving cars. The announcement came earlier today Wednesday, October 18.

Foxconn Chairman Liu Young-way and Nvidia CEO Jensen Huang announced at Foxconn’s annual tech showcase in Taipei that their companies will collaborate to construct “AI factories”. “A new type of manufacturing has emerged – the production of intelligence. And the data centers that produce it are AI factories,” Huang said. He also added that Foxconn has the expertise and scale to build such factories globally.

According to Nvidia, the “AI factories” will encompass various aspects, such as the digitalization of manufacturing and inspection processes, the creation of AI-driven electric vehicle and robotics platforms, and the expansion of language-based generative AI services.

If these endeavors prove successful, Foxconn’s clients will have the ability to employ these systems to provide generative AI services and leverage simulations for training autonomous machines like industrial robots and self-driving vehicles.

“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.”

Nvidia to Use Its Chips to Build AI Factories with Foxconn

Nvidia, the world’s most valuable chip company, has stated that the AI factories will utilize its chips and software, including the advanced GH200 superchip, which it is prohibited from selling in China.

Liu, who stood alongside Huang, expressed Foxconn’s ambition to transform from a manufacturing service provider into a platform solution company. He highlighted smart cities and smart manufacturing as additional applications for these AI factories.

As the leading supplier of Apple’s iPhones, Foxconn aims to replicate its past successes in manufacturing personal computers and smartphones while branching out into the production of electric vehicles for various companies.

In January, Foxconn and Nvidia initiated a collaboration to develop autonomous vehicle platforms. As part of this partnership, Foxconn would manufacture electronic control units (ECUs) for vehicles using Nvidia’s DRIVE Orin chip, targeting the global market.

On Wednesday, Foxconn introduced Model N, a new electric cargo van, marking the sixth prototype in their electric vehicle (EV) initiative. While the company has set ambitious objectives, it has only secured limited orders thus far.

Foxconn’s EV business leader, Jun Seki, revealed that the company is currently in discussions with 14 potential customers, although he did not disclose their identities. Additionally, Foxconn sees India and Japan as promising nations for the development of electric vehicles.


Foxconn Joins Hands with Nvidia to Build AI Factories

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