Foxconn and Nvidia to construct AI factories

Taiwanese tech giant Foxconn and US hardware leader Nvidia announced their collaboration to create AI factories, which are robust data processing centres designed to facilitate the production of next-generation products like electric cars. Foxconn, officially known as Hon Hai Technology Group, is the world's largest contract electronics manufacturer and is renowned for assembling devices for major global brands, including Apple's iPhone. Despite its established role in electronics assembly, the company has ambitious plans to expand beyond this domain. In recent years, Foxconn has ventured into the competitive and rapidly growing electric vehicle industry, unveiling concept cars during its annual event, Hon Hai Tech Day. This year, during the event, chairman Young Liu, in conjunction with Nvidia's CEO Jensen Huang, introduced a new class of data centres that power a wide range of applications. Nvidia, headquartered in Silicon Valley, gained prominence through its development of graphics processing units (GPUs). Initially designed as powerful chips for modern video games, GPUs have evolved into a crucial component driving the rapid advancement of generative AI. In their joint announcement, Foxconn and Nvidia expressed their intention to establish AI factories, which will serve as advanced hubs for data processing. These centres are expected to revolutionise the manufacturing industry, particularly in the production of innovative products like electric cars.