Foxconn's parent company, Hon Hai Precision Industry Chairman Liu Yangwei, revealed that market demand for Nvidia's Blackwell chips has reached "frenzied levels." Foxconn plans to become the first company to mass-produce and ship AI critical components, including servers and data centers equipped with these powerful chips. By 2025, the company aims to achieve a production capacity of 20,000 Nvidia NVL72 cabinets.
Foxconn announced its project to build the world's largest Nvidia GB200 chip manufacturing facility in Mexico. This move is a response to burgeoning demand in the AI market. Benjamin Ting, Senior Vice President of Foxconn's Cloud Enterprise Solutions Group, highlighted the immense demand for Nvidia's Blackwell chips during Hon Hai's annual technology event.
Liu Yangwei also confirmed that Foxconn is the world's first company to ship Nvidia's GB200 AI chips. Beyond just chips, the company intends to produce essential AI components, high-performance switches, and AI data centers. Liu anticipates delivery of the GB200 chips by the fourth quarter of 2024, although there may be slight delays due to higher-than-expected AI server demand.
Following this announcement, Hon Hai Precision's stock price fell by 1.7% to NT$194 per share.
Nvidia's collaboration with Hon Hai includes building a Blackwell supercomputing center in Kaohsiung, Taiwan, with initial operations expected by mid-2025 and full deployment by 2026. The center will feature the GB200 NVL72 cabinets, consisting of 64 racks and 4,608 Tensor Core GPUs. Hon Hai's vertical integration capabilities, such as advanced liquid cooling technology, will support this initiative.
Liu emphasized the global scope of this AI revolution, extending beyond Hon Hai's Taiwan facilities to operations in the Americas and Asia. He linked this development to a broader trend towards creating artificial general intelligence (AGI), which is rapidly advancing but still in early stages.
Hon Hai's recent financial results indicate a robust performance, with third-quarter revenues reaching NT$1.85 trillion, marking a 20.15% year-over-year increase and surpassing analyst expectations. The net profit grew by 6% to NT$35 billion, setting a new record for the period.
