Taiwan is excited as NVIDIA CEO Jensen Huang is set to attend Foxconn’s annual “Technology Day” event. Reports suggest that this visit will mark new beginnings and signal a deepening collaboration between these two tech giants.
A longstanding partnership
NVIDIA and Foxconn’s collaboration is far from new. However, recent developments in the generative AI field have spurred both companies to accelerate their joint efforts. Foxconn, a significant contributor to NVIDIA’s server orders, also specializes in producing “chip substrates,” making it an ideal partner for the GPU giant.
Ramping up “AI Chip Substrate” orders
One of the key takeaways from Jensen Huang’s visit to Taiwan is NVIDIA’s intention to increase its “AI chip substrate” orders, with Foxconn taking the majority share. This move aligns with NVIDIA’s ambitious plans in the AI sector, where chip modules are known for their high profitability.
Foxconn’s role in NVIDIA’s AI endeavors
Foxconn’s “Industrial Internet” division will be pivotal in fulfilling NVIDIA’s AI orders. This division will primarily focus on producing DGX and HGX chip substrates. Foxconn has secured an impressive 50% share of NVIDIA’s AI chip substrate orders, positioning itself as a comprehensive solution provider for Team Green’s AI chip module requirements. This includes substrates, motherboards, servers, and cabinets.
Foxconn’s ascent in the AI business
The collaboration with NVIDIA comes when Foxconn is already reaping the rewards of the AI boom. The company reported a staggering 1.1 trillion yuan in revenue from its server division, with a substantial portion attributed to AI-driven sales. With its deep-rooted ties to Jensen Huang and NVIDIA, Foxconn is poised to ascend further in the AI business landscape.
Jensen Huang’s relationship with Taiwanese suppliers
Jensen Huang’s longstanding relationships with Taiwanese suppliers have been instrumental in NVIDIA’s success. With Foxconn entering the fold alongside industry heavyweights like TSMC and Wistron, this partnership is expected to bolster NVIDIA’s AI ambitions and drive substantial profits.
Implications for the AI industry
The NVIDIA-Foxconn collaboration is not merely a business transaction; it has broader implications for the AI industry. As Foxconn becomes an integral part of NVIDIA’s supply chain, it signifies the growing importance of AI chip modules in the tech ecosystem. This move is set to boost innovation and competitiveness in the sector.
Foxconn’s exclusive status
One of the noteworthy outcomes of this partnership is the exclusive status that Foxconn is set to achieve. With an increasing share of NVIDIA’s AI chip substrate orders, Foxconn aims to become the GPU giant’s primary supplier, potentially surpassing competitors like Wistron.
Jensen Huang’s visit to Taiwan holds great promise. It signals a significant step forward in the collaboration between NVIDIA and Foxconn, with both companies poised to capitalize on the burgeoning AI market. The partnership is well-positioned for success with Foxconn’s capabilities and NVIDIA’s AI prowess.
Technology day and beyond
The Foxconn Technology Day, scheduled for October 18th, is expected to be a pivotal event where further details of this collaboration may be unveiled. It offers a platform for both companies to showcase their joint innovations and plans for the future.
Cancellation of AI summit keynote
It’s worth noting that Jensen Huang’s plans to hold a special keynote at the AI Summit in Tel Aviv, Israel, on October 16th have been canceled. This decision is attributed to recent events in the country, indicating the significance of his visit to Taiwan and the Foxconn partnership.
NVIDIA’s collaboration with Foxconn represents a significant development in the AI chip substrate industry. With Foxconn’s expanding role and Jensen Huang’s deep-rooted connections in Taiwan, this partnership is poised to reshape the landscape of AI chip module production. As the Foxconn Technology Day approaches, all eyes are on Taiwan, eager to witness the next chapter in this exciting collaboration.
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