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Apple Explores AI Server Production with Foxconn Amid Generative AI Surge

AInvestWednesday, Nov 6, 2024 9:00 am ET
1min read

Apple has reportedly initiated discussions with Foxconn to explore the production of AI servers in Taiwan, aiming to boost the computational power behind its Apple Intelligence devices and align with the rising wave of generative AI technologies. Foxconn, known primarily as Apple's iPhone assembler, has been expanding its capabilities in the AI server realm, evidenced by its current manufacturing of NVIDIA's AI servers and plans to build the world's largest GB200 chip plant in Mexico.

Insiders suggest that Foxconn's existing capacity to accommodate Apple's unique AI server requirements may be somewhat constrained. Apple's intention to deploy self-developed chips for these servers signifies a strategic move towards more in-house control over its AI infrastructure. These servers, primarily intended for internal use, do not currently match the larger production scales seen with NVIDIA orders.

To ensure the robust development of these AI servers, Apple is also considering partnerships with Lenovo and other smaller suppliers. This collaborative approach would leverage the expertise of multiple industry players to refine the design and production of the upcoming servers and underline Apple's commitment to fortifying its technological assets across various facets of its product ecosystem.

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