Foxconn And Nvidia Partner To Build An "artificial Intelligence Factory" With Nvidia Chips

Foxconn chairman Liu Young-way and Nvidia CEO Jensen Huang, launched a new partnership. (photo: twitter @klustout)

JAKARTA - Foxconn, the world's largest electronics company, will build a new data center using Nvidia chips and software for various applications. This includes autonomous cars, the two companies said on Wednesday, October 18.

Sharing the stage at Foxconn's annual tech show in Taipei, Foxconn Chairman Liu Young-way and Nvidia CEO Jensen Huang said their company would build this "artificial intelligence plant" together.

"The new type of manufacturing has emerged - intelligence production. And the data center that produces it is an artificial intelligence plant," Huang said, adding that Foxconn has the expertise and scale to build it globally.

While showing a hand sketch, Huang - who wore his signature black leather jacket - explained how "artificial intelligence manufacturers" can continue to receive and process data from autonomous electric vehicles to make them smarter.

"This car will certainly have a life experience and collect more data. The data will go to artificial intelligence factories. Artificial intelligence factories will improve software and update the entire artificial intelligence fleet," Huang, born in Taiwan. "In the future, every company, every industry, will have an artificial intelligence plant."

Nvidia, the world's highest-valued chip company, said in a statement that artificial intelligence manufacturers would use its chips and software, including the latest GH200 super chip banned from being sold in China.

The announcement comes after Nvidia on Tuesday 17 October said new export restrictions from the United States would also hinder the sale of two less powerful high-performance artificial intelligence chips created for the Chinese market along with one of its best gaming chips.

Nvidia shares have tripled in 2023, providing the company with a market value of more than $1 trillion, driven by enthusiasm for the company's central chip role in artificial intelligence applications.

Foxconn, Apple's largest supplier of iPhone, wants to emulate its level of success in assembling personal computers and smartphones as they expand their business in making electric cars for other companies.

In January 2023, Foxconn and Nvidia announced a partnership to develop an autonomous vehicle platform, in which Foxconn will manufacture an electronic control unit (ECU) for cars based on the DRIVE Orin Nvidia chip for sale to the global market.

Liu, who stands next to Huang, said Foxconn "is trying to transform himself from a manufacturing service company into a platform solutions company," calling smart cities and smart manufacturing another app for artificial intelligence factories.

Foxconn on Wednesday introduced a new cargo electric van called Model N, which is the sixth prototype in their efforts to develop electric cars. Despite having set ambitious goals, they have just received limited orders.

Jun Seki, head of the electric car business Foxconn, said the company was talking to 14 potential customers, without naming him, and seeing India and Japan as promising countries for the development of electric cars.

With an initial target of 5% of the global electric car market and the equivalent of $33 billion in revenue from electric and component car manufacturing by 2025, Foxconn's aggressive long-term ambition is to make nearly half of electric cars in the world.

Foxconn shares closed down 0.9% on Wednesday, compared to a 1.2% drop in the market more broadly (.TWII)