Apple Supplier Foxconn To Build World's Largest Nvidia Superchip Factory Amid Soaring AI Demand

Taiwanese contract manufacturer Hon Hai Precision Industry Co. Ltd. (OTC:HNHPF) the company, which is popularly called Foxconn is gearing up to construct the largest manufacturing facility for Nvidia Corp.’s (NASDAQ: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 (NASDAQ: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.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote