x
Analytics Economy Latin America USA

Foxconn Plans Massive Nvidia Superchip Facility in Mexico

Foxconn Plans Massive Nvidia Superchip Facility in Mexico
The Foxconn logo is displayed in this illustration captured on May 2, 2023 (REUTERS/Dado Ruvic/Illustration)
  • PublishedOctober 9, 2024

Foxconn, the world’s largest contract electronics manufacturer renowned for assembling Apple’s iPhones, announced plans on Tuesday to establish what it claims will be the largest manufacturing plant globally for Nvidia’s GB200 superchips in Mexico, Reuters reports.

The facility is set to play a pivotal role in producing Nvidia’s next-generation Blackwell family computing platform.

Benjamin Ting, Foxconn’s senior vice president for the cloud enterprise solutions business group, highlighted the scale of the project.

“We’re building the largest GB200 production facility on the planet,” stated Ting.

This move underscores Foxconn’s strategic response to the burgeoning demand for AI servers, critical for processing AI workloads.

Nvidia, a leading US technology firm, has already commenced shipping Blackwell samples to its partners and customers, anticipating substantial revenue in the fourth quarter from these advanced chips. Ting emphasized the significance of their partnership with Nvidia, noting the overwhelming market demand for the Blackwell platform.

Speaking at Foxconn’s annual tech day in Taipei alongside Nvidia’s vice president for AI and robotics, Deepu Talla, Ting expressed confidence in meeting this demand. Meanwhile, Foxconn Chairman Young Liu confirmed the facility’s location in Mexico, promising “very, very enormous” production capacity without elaborating further.

Foxconn already maintains a significant manufacturing presence in Mexico, having invested over $500 million in the state of Chihuahua. Liu highlighted Foxconn’s preparedness for the AI revolution, citing their advanced manufacturing capabilities, including liquid cooling and heat dissipation technologies crucial for supporting the GB200 server infrastructure.

Commenting on the company’s strong outlook for the current quarter following its highest-ever revenue in the third quarter, Liu refrained from specific details. Beyond consumer electronics assembly for Apple, Foxconn is actively diversifying into electric vehicle (EV) contract manufacturing through its Foxtron brand, aiming to utilize its technological expertise in vehicle production.

In response to questions about the competitive EV market landscape amid slowing demand, Liu affirmed Foxconn’s commitment to the sector, emphasizing the transformative potential of EVs in reshaping traditional automotive manufacturing paradigms.

Written By
Joe Yans