May 24, 2024

Taiwan’s Foxconn, the largest contract electronics manufacturer globally, is partnering with Nvidia to venture into building what they call AI factories. The firm’s CEO announced the partnership at Foxconn’s annual tech showcase in Taipei, according to an October 17 post from Nvidia.

The strategic partnership between Nvidia CEO Jensen Huang and Foxconn chairman Liu Young-way aims to make AI factories a hub for producing intelligence.

Foxconn and Nvidia Collaboration to Build AI Factories

Foxcom and Nvidia’s partnership will facilitate the building of AI factories globally to accelerate AI industrial revolution. They will continuously collect and process data from different sources, primarily focusing on data from self-driven cars.

The idea behind this data-driven approach is to improve the capabilities of autonomous vehicles. Jensen Huang interpreted the concept by highlighting how AI factories will be pivotal in improving automotive software development.

They will use real-world data gathered by such vehicles to engineer a new era of safe and secure software-driven care. Huang foresees the model beyond just automotive applications, noting that every industry and company will have these AI factories over time.

Meanwhile, Nvidia, the world’s most valuable chip firm, will support the initiative by supplying the necessary software and chips. A notable example of such chips is the cutting-edge GH200 super chip, currently unavailable for sale in China due to export limitations from the United States.

Interestingly, the companies’ partnership coincides with Nvidia’s revelation that the export restriction will impact the sales of some AI chips in the Chinese market. Despite these challenges, Nvidia’s shares have surged this year, surpassing a market value of $1 trillion. This is mainly because of the rising importance of their chips in AI applications.

Foxconn’s Progress in the Electric Vehicle Industry

Foxconn, renowned as a key supplier for Apple’s iPhones, is setting its sights on diversification, aiming to replicate its success in the assembly of consumer electronics by venturing into the electric vehicle market.

The partnership with Nvidia consolidates their previous collaboration to develop autonomous vehicle platforms, demonstrating their commitment to cutting-edge technology.

In addition to their role in electric vehicles, Foxconn and Nvidia envision broader applications for AI factories. These include applications in smart cities and intelligent manufacturing, demonstrating the versatility of the AI-driven manufacturing model.

Foxconn’s Tech Day showcased its ambitious goals and unveiled the Model N. This electric cargo van represents the latest step in their push into the electric vehicle market.

Meanwhile, information from Jun Seki, Foxconn’s head of EV business, reveals that the company continues to relate with prospective customers, particularly those from India and Japan. This development comes as the company strives to raise its share of the global EV market.

Foxconn’s aspirations are grand, with initial targets set at 5% of the global EV market and $33 billion in EV and component manufacturing revenue by 2025. Besides this, the company has a more courageous long-term vision, planning to produce almost 50% of the world’s electric vehicles.

Meanwhile, the partnership between both companies highlights a significant step in the tech industry, improving the importance of AI-driven products.

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