Apple supplier Foxconn to build ‘AI factories’ using Nvidia’s chips and software for a range of applications including self-driving cars

Taiwan’s Foxconn Technology Group, the world’s largest electronics contract manufacturer, will build a new kind of data centre using Nvidia Corp’s chips and software for a range of applications including self-driving cars, the two companies said on Wednesday.
Sharing a stage at the Taiwanese firm’s annual tech showcase in Taipei, Foxconn chairman Liu Young-way and Nvidia chief executive Jensen Huang said their companies were building these so-called artificial intelligence (AI) factories together.

“A new type of manufacturing has emerged – the production of intelligence. And the data centres that produce it are AI factories,” Huang said, adding that Foxconn had the expertise and scale to build them globally.

Showing a hand-drawn sketch, Huang explained how these “AI factories” could be applied to a fleet of autonomous vehicles.

A man inspects the Foxtron Model B electric vehicle, part of a range of EVs made by Foxconn Technology Group, on display during Hon Hai Technology Day in Taipei on October 18, 2023. Photo: EPA-EFE

“This car would of course go through life experience and collect more data. The data would go to the AI factory,” the Taiwan-born Huang said. “The AI factory would improve the software and update the entire AI fleet. In the future, every company, every industry, will have AI factories.”

Nvidia, the world’s most valuable semiconductor company, said in a statement the AI factories would be based on its accelerated computing platform, including its next-generation GH200 superchip that is barred from being sold to mainland China.
The announcement comes after Nvidia on Tuesday said new US export restrictions would block sales of two less powerful, high-end AI semiconductors that it created for the Chinese market, along with one of its top-of-the-line gaming chips.

Nvidia’s shares have tripled in 2023, giving the company a market value of more than US$1 trillion, driven by excitement over the central role of the company’s chips in AI applications.

Details of Nvidia Corp’s HGX AI supercomputing platform – purpose-built for artificial intelligence, simulation and data analytics – on display at Foxconn Technology Group’s annual Hon Hai Technology Day in Taipei on October 18, 2023. Photo: EPA-EFE

In January, Foxconn and Nvidia announced a partnership to develop autonomous vehicle platforms, in which the Taiwanese contractor would manufacture electronic control units for cars based on Nvidia’s DRIVE Orin system-on-a-chip to sell to the global market.

Liu, standing next to Huang, said Foxconn is “trying to convert itself from a manufacturing service company to a platform solution company”, citing smart cities and smart manufacturing as other applications for AI factories.

Foxconn’s shares closed down 0.9 per cent on Wednesday, compared with a 1.2 per cent fall on the broader market.

South China Morning Post

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