After being the exclusive supplier to Apple, Foxconn has set its sights on NVIDIA, intending to take its share from the AI frenzy.
Foxconn Aims at Capitalizing the AI Hype Through NVIDIA, Sees Immense Market Potential
Korean media outlets report that Foxconn has reportedly acquired AI-based orders from NVIDIA, with a majority of them being based on chip substrates. For those who aren't familiar with the "chip substrates" term, it is basically called the packaging process and holds significant importance, especially for NVIDIA's AI GPUs. The majority share accounts for NVIDIA's HGX/DGX supercomputers, which are currently in high demand, and are categorized as the "holy grail" in the industry.
Foxconn is expected to formally unveil the partnership with NVIDIA during its upcoming presentation in Taiwan, where the company will also discuss developments on Apple's upcoming iPhone 15 lineup. Foxconn aims at becoming the "biggest chip substrate supplier of NVIDIA", establishing its dominance amongst competitors like Wistron. For clarification, Foxconn's division Fii (Foxconn Industrial Internet), has taken responsibility to fulfill DGX and HGX orders.
NVIDIA looks to diversify its supply chain since the company anticipates the AI hype to prolong for a decade. To prevent situations such as order backlogs and production bottlenecks, NVIDIA is also looking out for potential suppliers, with the names Samsung and Micron topping their list.
Foxconn anticipates tremendous growth through AI, with Chairman Young Liu, expecting the demand for computing power to drastically increase. Foxconn reportedly gained 1.1 trillion yuan in revenue from its server business, with 20% accounting through AI-driven sales.
The AI industry is getting more competitive day by day, with reports of companies racing each other to establish dominance. We recently reported AMD's plans to introduce "cut-down" MI300 Instinct AI GPUs into Chinese markets, along with hinting next-gen MI400 release. With that said, we are surely in for a thrill ride, and I can't wait to see what the industry holds in the future.
News Source: United Daily News
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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