- Foxconn says it is building huge plant for assembling Nvidia product in Mexico
- Foxconn riding high on demand for AI servers
- Foxconn chairman sees strong Q4 outlook
Electronics manufacturer Foxconn is constructing the largest manufacturing facility for Nvidia’s GB200 superchips in Mexico. These chips are a crucial component of Nvidia’s next-generation Blackwell computing platform, which is highly sought after in the growing AI industry.
“We’re building the largest GB200 production facility on the planet,” said Benjamin Ting, Foxconn’s Senior Vice President for Cloud Enterprise Solutions. The announcement was made during Foxconn’s annual technology day in Taipei, where Ting emphasized the “awfully huge” demand for Nvidia’s Blackwell platform, which has already begun shipping samples to partners.
Nvidia superchip facility in Mexico
Foxconn, known for assembling Apple’s iPhones, is expanding its reach beyond consumer electronics with a growing focus on AI server production. The company is enhancing its manufacturing capabilities to meet the demand, utilizing advanced liquid cooling and heat dissipation technologies required for AI servers.
Chairman Young Liu confirmed that the plant in Mexico would have “very, very enormous” capacity, though he did not provide specific details about the location. Foxconn has already invested over $500 million in Mexico, particularly in the state of Chihuahua, as part of its efforts to diversify its operations.
Nvidia expects to generate several billion dollars in revenue from its Blackwell chips in the fourth quarter. CEO Jensen Huang has described the demand for these next-generation AI chips as “insane,” with each unit estimated to cost between $30,000 and $40,000.
Foxconn’s move into AI and advanced technology aligns with its larger strategy to diversify away from consumer electronics, including its efforts in the electric vehicle market through its Foxtron brand. Despite fierce competition in the EV sector, Liu said, “It is the right direction, and we will continue to work hard towards that.”
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Source: Reuters
