After becoming one of the exclusive hardware component suppliers for Apple, Foxconn continued to receive a huge order from NVIDIA, helping the company gain a significant market share from the ongoing AI fever. out worldwide.
Accordingly, Foxconn is said to have won a contract from NVIDIA related to AI hardware outsourcing, which is mainly based on “chip substrates”. For those unfamiliar with the term “chip substrate,” this is essentially the component that connects chips to the circuit boards that hold them in personal computers and other devices. This belongs to the machining process and is of significant importance to chip performance, especially for NVIDIA’s AI GPUs, which are widely used in supercomputer systems around the world.
As planned, Foxconn will officially announce its partnership with NVIDIA at an upcoming event in Taiwan. Here, the company will also discuss the hardware highlights of Apple’s upcoming iPhone 15 series.
Foxconn aims to become “NVIDIA’s largest chip die supplier”, establishing its dominance over leading industry competitors such as Wistron. Specifically, Foxconn’s Fii divisions (Foxconn Industrial Internet), have assumed responsibility for fulfilling DGX and HGX orders from NVIDIA.
As for NVIDIA, the company is also looking to diversify its supply chain as a necessary preparation for an AI boom that is expected to last more than a decade. To prevent situations such as order backlogs and production bottlenecks, NVIDIA is also looking for potential suppliers other than Foxconn, with Samsung and Micron at the top of the list.
Foxconn President Young Liu predicts the tremendous growth in AI-related gadgets will lead to strong demand for computing power as well as corresponding hardware. Foxconn is said to have earned 1.1 trillion yuan in revenue from its server business, with 20% of sales related to AI.
The AI industry is becoming more competitive by the day, with companies actively racing to establish dominance and foothold as soon as possible. Foxconn is planning to expand production of key components for consumer electronics and electric vehicles to increase competitiveness in the market.