Foxconn, the leading contract electronics manufacturer globally and a major assembler for Apple’s iPhones, is capitalising on the surge in artificial intelligence by assembling servers for AI processing. Benjamin Ting, the senior vice president for the cloud enterprise solutions business group at Foxconn, announced that the company is constructing the world’s largest GB200 production facility.
Foxconn is in the process of constructing what will be the largest manufacturing facility in the world, Mexico, to assemble Nvidia’s GB200 Superchips. These chips are a crucial part of the next-generation computing platform called Blackwell from the U.S.-based company, according to senior executives at the Taiwanese firm. They announced this development on Tuesday.
A source from the Mexican government confirmed that the facility is set to be established in Guadalajara.
In August, Nvidia revealed that it had begun distributing Blackwell samples to its partners and customers following some design modifications. The company anticipates these chips will generate several billion dollars in revenue during the fourth quarter. At the company’s annual tech day in Taipei, Ting emphasized the significance of the collaboration with Nvidia, pointing out the substantial demand for the Blackwell platform. “The demand is awfully huge,” Ting remarked, standing beside Deepu Talla, Nvidia’s vice president for AI and robotics. Later, in a discussion with journalists, Foxconn Chairman Young Liu stated that the plant would have “very, very enormous” capacity and would be located in Mexico, although he opted not to provide more details.
Foxconn has already established a significant manufacturing presence in Mexico, with over $500 million invested in the state of Chihuahua. Liu highlighted that the company’s supply chain was primed for the AI revolution, boasting manufacturing capabilities that include advanced liquid cooling and heat dissipation technologies needed for the GB200 server infrastructure. He noted a strong outlook for the current quarter without sharing specifics. On Saturday, Foxconn reported its highest-ever revenue for the third quarter, driven by strong demand for AI servers.
Foxconn is also ambitiously planning to diversify beyond its traditional role as a consumer electronics producer for Apple. It aims to leverage its technological expertise to enter into electric vehicle contract manufacturing and to produce vehicles under the Foxtron brand.
Addressing the intense competition in the global electric vehicle market amid waning demand, Liu affirmed Foxconn’s commitment to the sector. “It is the right direction, and we will continue to work hard towards that,” he stated, adding that the traditional “engine barrier” in car manufacturing no longer exists for electric vehicles.
Liu explained that automakers no longer need to manufacture the entire car themselves, reflecting a significant shift in the industry landscape.
