Hon Hai Precision Industry and Nvidia Unite for AI Expansion: A Game Changer in Electric Vehicle Manufacturing

Foxconn's Strategic Move into Nvidia Superchip Production

Foxconn Technology Group, also known as Hon Hai Precision Industry, has embarked on an ambitious plan to establish the world's largest manufacturing facility for bundling Nvidia's GB200 superchips in Mexico. This initiative represents a critical component in the US firm's next-generation Blackwell platform, as industry leaders, including Benjamin Ting, senior vice-president of the cloud enterprise solutions business group, emphasize the scale of this production operation.

Expanding Horizons: From iPhones to Electric Vehicles

As the world's largest contract electronics manufacturer and Apple's top iPhone assembler, Foxconn is strategically pivoting towards electric vehicle (EV) contract manufacturing. With plans to leverage its technological prowess through the Foxtron brand, Foxconn aims to meet the explosive demand for cutting-edge EVs.

Rapid Growth in AI and EV Sectors

Senior executives at Foxconn noted that the demand for Nvidia's Blackwell platform is unprecedented. Liu Young-way, Foxconn's chairman, highlighted the company's commitment to diversifying beyond consumer electronics, stating, “It is the right direction and we will continue to work hard”.

Investments and Future Outlook

• Over $500 million invested in Chihuahua, Mexico, enhancing Foxconn's manufacturing capabilities.
• Advanced liquid cooling and heat dissipation technologies to support the infrastructure for the GB200 server.
• Foxconn reports record revenue for the third quarter, primarily driven by robust AI server demand.