Foxconn Enters the AI Race, Manages to Obtain Huge Chip Substrate Order From NVIDIA
After being the exclusive supplier to Apple, Foxconn has set its sights on NVIDIA, intending to take its share from the AI frenzy.
Korean media outlets report that Foxconn has reportedly acquired AI-based orders from NVIDIA, with a majority of them being based on chip substrates. For those who aren't familiar with the "chip substrates" term, it is basically called the packaging process and holds significant importance, especially for NVIDIA's AI GPUs. The majority share accounts for NVIDIA's HGX/DGX supercomputers, which are currently in high demand, and are categorized as the "holy grail" in the industry.
Foxconn is expected to formally unveil the partnership with NVIDIA during its upcoming presentation in Taiwan, where the company will also discuss developments on Apple's upcoming iPhone 15 lineup. Foxconn aims at becoming the "biggest chip substrate supplier of NVIDIA", establishing its dominance amongst competitors like Wistron. For clarification, Foxconn's division Fii (Foxconn Industrial Internet), has taken responsibility to fulfill DGX and HGX orders.
NVIDIA looks to diversify its supply chain since the company anticipates the AI hype to prolong for a decade. To prevent situations such as order backlogs and production bottlenecks, NVIDIA is also looking out for potential suppliers, with the names Samsung and Micron topping their list.
Foxconn anticipates tremendous growth through AI, with Chairman Young Liu, expecting the demand for computing power to drastically increase. Foxconn reportedly gained 1.1 trillion yuan in revenue from its server business, with 20% accounting through AI-driven sales.
The AI industry is getting more competitive day by day, with reports of companies racing each other to establish dominance.
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