Business Essentials for Professionals


Foxconn And Nvidia Collaborate To Create 'AI Factories'

Foxconn And Nvidia Collaborate To Create 'AI Factories'
According to the firms, Foxconn, the world's largest contract electronics manufacturer, will develop a new type of data centre employing Nvidia chips and software for a variety of applications including self-driving cars.
Foxconn Chairman Liu Young-way and Nvidia CEO Jensen Huang shared a platform at Foxconn's annual tech expo in Taipei, saying their businesses would construct these "AI factories" together.
"A new type of manufacturing has emerged - the production of intelligence. And the data centres that produce it are AI factories," Huang said, adding that Foxconn had the expertise and scale to build them globally.
Huang, wearing his distinctive black leather jacket and displaying a hand-drawn design, showed how "AI factories" might continuously collect and process data from autonomous electric vehicles to make them smarter.
"This car would of course 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," said the Taiwan-born Huang. "In the future, every company, every industry, will have AI factories."
Nvidia, the world's most valuable chip maker, announced in a statement that the AI factories would use its chips and software, including its cutting-edge GH200 superchip, which it is not permitted to sell in China.
The announcement follows Nvidia's statement on Tuesday that new US export restrictions will also prevent shipments of two less powerful high-end AI processors designed for the Chinese market, as well as one of its top-of-the-line gaming chips.
Nvidia's stock tripled in 2023, giving the business a market worth of well than $1 trillion, propelled by optimism about the company's chips' central role in AI applications.
Foxconn, Apple's main supplier of iPhones, hopes to emulate its success in assembling personal computers and smartphones as it extends into the production of electric vehicles for other companies.
Foxconn and Nvidia established a partnership in January to develop autonomous vehicle platforms, with Foxconn manufacturing electronic control units (ECUs) for automobiles based on Nvidia's DRIVE Orin processor and selling them to the global market.
Liu, who was standing next to Huang, stated that Foxconn is "trying to convert itself from a manufacturing service company to a platform solution company," mentioning smart cities and smart manufacturing as examples of possible possibilities for AI factories.
Foxconn presented a new electric freight truck named Model N on Wednesday, the sixth prototype in its ambitious EV push that has so far received only limited orders.
Jun Seki, president of Foxconn's EV division, stated that the company is in talks with 14 potential clients but did not name them, and that India and Japan are viable markets for EV development.
Initially aiming for 5% of the global EV market and $33 billion in income from EV and component manufacturing by 2025, Foxconn's aggressive long-term goal is to produce nearly half of the world's EVs.
Foxconn's Tech Day is held on the birthday of the company's billionaire founder, Terry Gou, who stepped down as CEO in 2019.
He is now standing as an independent candidate for Taiwan's president in January elections and did not attend the ceremony, unlike last year when he drove on stage in a prototype electric vehicle.
Foxconn's stock fell 0.9% on Wednesday, compared to a 1.2% drop in the overall market.

Christopher J. Mitchell

Markets | Companies | M&A | Innovation | People | Management | Lifestyle | World | Misc