Foxconn is constructing the world's largest manufacturing facility in Mexico dedicated to bundling Nvidia's GB200 superchips, a crucial component for Nvidia's next-generation Blackwell computing platform. On October 8, senior executives from Foxconn revealed this ambitious project, highlighting the company's growth driven by the booming demand for AI technology. Benjamin Ting, Foxconn's senior vice-president for the cloud enterprise solutions business group, stated, "We’re building the largest GB200 production facility on the planet."
Nvidia recently started shipping samples of its Blackwell chips to partners and customers, projecting significant revenue from these products in the upcoming fourth quarter. Ting emphasized the importance of the partnership between Foxconn and Nvidia, noting that "the demand is awfully huge." This sentiment was echoed at Foxconn's annual tech day in Taipei, where Nvidia's vice-president for AI and robotics, Deepu Talla, was present.
Foxconn chairman Young Liu confirmed that the plant in Mexico would have "very, very enormous" capacity. The company has already invested over US$500 million in its manufacturing operations within the state of Chihuahua, Mexico. He mentioned that Foxconn's supply chain is well-prepared for the AI revolution, citing their advanced liquid cooling and heat dissipation technologies, which are essential for the GB200 server's infrastructure.
Foxconn's outlook for the current quarter remains optimistic, having reported record revenue for the third quarter due to robust AI server demand. The company is also working to diversify its portfolio beyond consumer electronics, particularly in collaboration with Apple. They plan to leverage their technological expertise to enter contract manufacturing for electric vehicles (EVs) and produce vehicles under the Foxtron brand.
Addressing the increasing competition in the EV sector and the challenges of slowing demand, Liu reaffirmed Foxconn's commitment to this market. He highlighted that the barrier to entry in car manufacturing has diminished, asserting that automakers no longer need to build entire vehicles themselves. Instead, they can collaborate on different segments, which opens up new opportunities for companies like Foxconn in the evolving automotive landscape.