Foxconn Builds World's Largest NVIDIA AI Chip Plant in Mexico, Eyes AI Boom

Foxconn executives announced on Tuesday that the company is constructing the world's largest NVIDIA GB200 chip manufacturing plant in Mexico. The GB200 is a superchip based on NVIDIA’s new-generation AI architecture, Blackwell. This move underscores Foxconn’s strategic pivot towards AI technology amidst growing interest in AI-driven solutions.

Foxconn, recognized as the world's largest electronics contract manufacturer and major assembler of Apple's iPhones, is capitalizing on the AI trend by producing servers integral to AI processes. Benjamin Ting, Senior Vice President of Foxconn Cloud Enterprise Solutions, confirmed, "We are building the world's largest GB200 production facility," highlighting the significant demand for NVIDIA's Blackwell platform.

NVIDIA revealed in August that, following design adjustments, they commenced shipping samples of the Blackwell chips to partners and clients, with expectations of generating billions in revenue during the fourth quarter. The collaboration between Foxconn and NVIDIA is deemed crucial, as the market anticipation for the Blackwell platform intensifies.

Chairman Young Liu further stated that the Mexican plant’s capacity will be "very, very large," although specific details remain undisclosed. Foxconn has a substantial presence in Mexico, having invested over $500 million in the state of Chihuahua, reinforcing its commitment to the region.

Liu also noted that Foxconn’s supply chain is well-prepared for the AI revolution, boasting manufacturing capabilities that include advanced liquid cooling and thermal technologies essential for the GB200 server infrastructure.

Looking ahead, Liu expressed optimism about the current quarter's prospects without divulging specifics. The robust demand for AI servers led to Foxconn achieving record revenues in the third quarter. Besides its focus on AI, Foxconn aims to leverage its technological prowess by entering the electric vehicle (EV) sector, offering contract manufacturing services and producing Foxconn-branded vehicles.