Foxconn is building the world's biggest packaging site for bundling Nvidia's GB200 Superchips in Mexico—a new investment in the making.
According to Foxconn executives on Tuesday, Oct. 7, it is part of Nvidia's next-generation Blackwell computing platform. Fondly known as Apple's top iPhone assembler, Foxconn is strategically and noticeably moving to ride the artificial intelligence wave by assembling such high-demand servers crucial to processing workloads for AI.
Nvidia and Foxconn: A Game-Changing Partnership
Back in August, Nvidia announced that it would send the first samples of the Blackwell platform to its partners following design revisions on the product. According to Reuters, the Superchips makers are so eager that it is expected Nvidia will rake in billions in revenue from these chips in Q4.
"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.
At least in the tech world, Nvidia and Foxconn's partnership has greatly increased recently. According to news agency ITR, Ting, an executive of Foxconn, said at the annual tech day of the company in Taipei that the demand for Nvidia's Blackwell platform "is really huge."
The strategic hub in waiting is Mexico, the country of Superchip manufacturing.
Mexico: A Strategic Hub for Superchip Manufacturing
Foxconn Chairman Young Liu further explained that the new manufacturing plant in Mexico would have a "very, very enormous" capacity.
While specifics weren't provided, the company has made significant investments in Mexico, primarily in Chihuahua, where it has channeled over $500 million into its operations.
Foxconn's Mexico move seems to blend well with its overall plan of drastically improving the supply chain to capitalize on the rising demand of the AI wave, according to South China Morning Post.
The company will have a service facility for NVidia GB200 servers with sophisticated liquid cooling and heat dissipation technologies, allowing it to integrate and provide high performance seamlessly.
Hopping the AI and EV Waves
Foxconn is not just an AI play. The company has ventured further into other areas, too. Before, it was the lead player in consumer electronics. Now, the company has diversified even more.
The rise of electric vehicles has formed part of the move through its Foxtron brand. Foxconn aims to offer automakers an alternative to building entire cars, citing the elimination of the "engine barrier" that traditionally separated automakers from the tech industry.
Foxconn remains upbeat on the EV business line, robust against intense competition worldwide and slowing demand. Liu assured that the company continues to innovate and grow in the EV market, stressing that "it is the right direction, and we will continue to work hard towards that."
Strong Finances for Aiding Demand of AI
Such expansion into new industries will ensure Foxconn's continued strength in terms of financials. The firm recently reported its highest revenue figures, primarily due to this growing demand for AI servers.
Foxconn's success in AI server has shown the agility and foresight in capitalizing on the very fast-increasing booming sector of AI, positioning it not just as a giant in traditional electronics manufacturing but as a giant in nascent technologies like AI and electric vehicles.
Foxconn, indeed, is a turning point for itself as it shifts from traditional manufacturing to AI and EV innovation. With good prospects for the current quarter, Foxconn is here to stay as the giant of the technology world in years to come.
