Foxconn to Build World’s Largest Nvidia Superchip Factory in Mexico
Foxconn, the world’s largest contact electronics manufacturer, is all set to build the largest AI chip factory in the world for Nvidia. The manufacturing unit is going to be in Mexico for the production and the bundling of Nvidia GB200 superchip.
As reported by Reuters, Nvidia began shipping its GB200 superchips to partners and customers in August, this year after making some changes. Because of this, the company is expecting significant revenue growth in the fourth quarter.
GB200 Chips: Key to Next-Generation Computing
Foxconn’s senior executives confirmed that Nvidia Superchips will be a crucial component of its next-generation Blackwell computing platform.
Even when priced at $40000, the Blackwell AI chips are in high demand among Microsoft, Open AI, and Meta.
On October 8th Benjamin Ting, Senior Vice President at Foxconn announced that at the company’s annual tech day that was held in Taipei, “We’re building the largest GB200 production facility on the planet”, showing the extent of Foxconn’s investment in AI technology.
“The demand is awfully huge,” Mr. Ting especially pointed out the strong cooperation between Foxconn and Nvidia. He made this statement, standing next to Nvidia Vice President for Artificial Intelligence and Robotics, Deepu Talla, emphasizing the close partnership between the two firms on the future of AI development.
Factory Location and Expansion in Mexico
Speaking to reporters, Foxconn Chairman Young Liu disclosed that the GB200 superchip factory would be located in Mexico, describing the facility as “very, very enormous.”
Foxconn, known for its role as the largest assembler for Apple, already has a strong presence in Mexico, as they have invested over $500 million in Chihuahua.
Young Liu said, “Foxconn’s supply chain is ready for the AI revolution, with advanced manufacturing capabilities, including liquid cooling and heat dissipation technologies necessary to the GB200 server’s infrastructure.”
Foxconn Future Plans
Foxconn is now focusing on diversification as it intends to use its technical knowledge in offering contract manufacturing of EVs. It is also seeking to produce vehicles based on the models of the Foxtron brand.
When asked about the increasing competition in the midst of the slowing demand in the global EV market. Mr. Liu said that Foxconn was committed to the sector. “it is the right direction, and we will continue to work hard towards that,”. He also added that, with EVs the ‘engine barrier’ no longer exists in car manufacturing. Automakers “don’t need to make whole cars themselves anymore.”
