In a landmark collaboration, Foxconn Technology Group, the world’s largest electronics contract manufacturer, and NVIDIA, the leading innovator in AI computing, have joined forces to revolutionize the future of manufacturing. Announced during Foxconn’s annual tech showcase in Taipei, the partnership centers on creating cutting-edge data centers, termed “AI factories,” using NVIDIA’s advanced AI chips and software.

These AI factories, a pioneering concept in manufacturing intelligence, will leverage NVIDIA’s high-end AI chips, including the GH200 super chip, in a bid to process data from autonomous electric vehicles. The strategic vision involves continuous improvement of software for self-driving cars and other AI-driven applications. 

Jensen Huang, NVIDIA’s CEO, envisions a future where every industry benefits from AI factories, which will enable the collection of data from autonomous vehicles and facilitate fleet-wide software updates.

This collaboration builds upon Foxconn and NVIDIA’s earlier partnership, announced in January, which focused on developing autonomous vehicle platforms. As part of this initiative, Foxconn will manufacture electronic control units based on NVIDIA’s DRIVE Orin system-on-a-chip for the global market. The companies are pushing the boundaries of AI-driven manufacturing, aiming not only to enhance self-driving technology but also to explore applications in smart cities and smart manufacturing.

Foxconn, transitioning from a manufacturing service company to a platform solution company, has revealed ambitious plans in the electric vehicle (EV) sector. The company recently unveiled its electric cargo van, Model N, with an eye on markets in India and Japan. 

Foxconn is in discussions with 14 potential customers for its EVs, targeting a 5% share of the global EV market and an impressive $33 billion in revenue from EVs and components by 2025. Their long-term aspiration is nothing short of groundbreaking: to manufacture nearly half of the world’s EVs.

Meanwhile, NVIDIA’s shares have soared in 2023, reaching a staggering market value of over $1 trillion, driven by the pivotal role of its chips in various AI applications. Despite regulatory restrictions on the GH200 super chip in China, the collaboration with Foxconn underscores the global impact of their endeavor, with potential applications in diverse sectors beyond automotive technology.

The announcement comes against the backdrop of Foxconn’s founder, Terry Gou Tai-ming, emerging as an independent candidate for Taiwan’s presidency, adding another layer of significance to the company’s evolving narrative. 

While Foxconn’s shares experienced a slight dip following the announcement, the broader implications of this groundbreaking partnership are poised to shape the future landscape of AI-driven manufacturing on a global scale.

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