Foxconn, the world’s largest outsourced electronics manufacturer, and Nvidia, a leader in Artificial Intelligence computing and the world’s most valuable chip company, announced on Wednesday (18) a partnership aimed at building an AI factory. The new type of data center, according to the companies, will use Nvidia chips and software for a range of applications, including optimizing autonomous driving for EVs.
You need to know this about Foxconn and Nvidia sign partnership:
- The announcement was made during Foxconn’s annual technology showcase in Taiwan by Foxconn chairman Liu Young-way and Nvidia CEO Jensen Huang;
- Huang explained that “AI factories” will be able to continuously receive and process data from autonomous electric vehicles to make them smarter;
- Nvidia added that the AI factories will use its state-of-the-art GH200 superchip.
Of course, this car would 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. In the future, all companies, all sectors, will have AI factories.
Nvidia CEO Jensen Huang.
As Reuters recalls, this is not the first partnership that Foxconn, Apple’s biggest iPhone supplier, and Nvidia have struck this year. In January, the companies teamed up to develop autonomous vehicle platforms, in which Foxconn would manufacture electronic control units (ECUs) for cars based on Nvidia’s DRIVE Orin chip to sell on the global market.
Foxconn is trying to transform itself from a manufacturing services company into a platform solutions company.
Liu Young-way, president of Foxconn.
Foxconn’s plans
Foxconn’s steps and projects show that the company is considering replicating its level of success in the assembly of computers and smartphones as it expands into the manufacture of electric vehicles for other companies.
In an ambitious target, the company is initially aiming for 5% of the global electric vehicle market, calculating that in the long term it will manufacture almost half of the world’s EVs.
The partnership with Nvidia seems to be the perfect match to make the goals a reality, as the company’s shares tripled in 2023, giving the company a market value of more than $1 trillion – an achievement driven by enthusiasm for the central role of the group’s chips in AI applications.