Foxconn and Nvidia’s world’s largest GB200 superchip plant in Mexico: What we know

Foxconn, a tech company based in Taiwan, announced that it is constructing the largest production facility in the world for the GB200 “superchips” that power AI servers, which are manufactured by US hardware leader Nvidia. The largest contract electronics manufacturer in the world, Foxconn (officially Hon Hai Precision Industry) assembles gadgets for Apple and other large tech firms.

1. World’s Largest GB200 Superchip Plant in Mexico

Foxconn, the world’s biggest contract electronics maker, is building the largest production plant for Nvidia’s GB200 superchips. The plant will be located in Guadalajara, Jalisco.

Chairman Young Liu, while opening day two of Hon Hai Tech, said that Foxconn would be “the first to ship these superchips”.

2. Focus on AI-Powered Servers

These GB200 superchips are essential for the next generation of computing because they are built to run AI servers. Advanced liquid cooling and heat dissipation technologies, which are critical to the GB200 servers’ infrastructure, will be incorporated.

3. Artificial Intelligence

The development of more complex artificial intelligence (AI) applications depends on these chips, which are utilised in simulation and scientific applications “Artificial intelligence makes business sense. AI is embedded in automation. Automation is productivity. Our customers told us they want to see more automation. This is an almost one-fold increase in productivity when automation is deployed in our factories. Our automotive manufacturing facility also in Kaohsiung will be one of the group’s benchmark AI factories,” Young Liu said.

4. Foxconn’s Diversification Beyond Electronics

In an effort to lessen its reliance on device assembly, Foxconn is diversifying into industries including servers, semiconductors, and electric cars. More than $500 million has been invested in Mexico by Foxconn. The business said in August that it will invest an additional $241.2 million to support the nation’s manufacture of AI servers.

5. Nvidia’s Subcontractor Strategy

Unlike competitors, Nvidia outsources chip production to subcontractors like Foxconn, which will be the first to ship these superchips.

6. Electric Vehicle Expansion Plans

At Hon Hai Tech Day event, Foxconn also showcased new electric vehicle prototypes, signaling ambitions to become a major EV contract builder.