Foxconn and Nvidia have announced a groundbreaking partnership to create “AI factories” that will revolutionize many industries, including autonomous vehicles. Foxconn, the largest contract electronics manufacturer in the world, and Nvidia, the world’s leading chip company, plan to combine their resources to build cutting-edge data centers that will generate AI-based intelligence. This article delves into the specifics of this partnership, its potential future effects, and their impact on the international market.
Manufacturing with Artificial Intelligence Gets Underway
A new era of manufacturing, the creation of intelligence, has emerged as a result of the rapid development of technology and the increasing demand for AI-powered solutions. The vision for AI factories was presented by Foxconn Chairman Liu Young-way and Nvidia CEO Jensen Huang at Foxconn’s annual tech showcase in Taipei. These plants will act as data processing hubs, boosting the intelligence of autonomous electric vehicles over time.
Using a hand-drawn sketch, Huang explained the concept and demonstrated how these AI factories will collect data from autonomous electric vehicles and use it to enhance the software and release updates to the entire fleet. When asked about the future of the various industries, he said, “every company, every industry, will have AI factories.”
How Nvidia’s Hardware and Software Contribute
The innovative hardware and software developed by Nvidia will form the backbone of these AI manufacturing facilities. The partnership will make use of Nvidia’s robust hardware and software, including the GH200 superchip, which cannot be sold in China at the present time due to export restrictions. Together, Foxconn’s global reach and manufacturing expertise and Nvidia’s cutting-edge technology will make it possible to build AI factories all over the world.
Foxconn and Nvidia’s collaboration goes beyond building AI factories. The two businesses announced their partnership to create autonomous vehicle platforms in January. Foxconn will mass-produce Nvidia’s DRIVE Orin-based automotive electronic control units (ECUs) for sale around the world. Foxconn is shifting its focus from providing manufacturing services to providing platform solutions, and artificial intelligence (AI) factories are a key part of this transition.
Investment by Foxconn in the Electric Vehicle Market
Foxconn, best known as Apple’s primary iPhone supplier, has set its sights on the growing EV market. The corporation’s long-term goal is to establish itself as a dominant player in the electric vehicle market, much like it has with PC and smartphone manufacturing. Foxconn has introduced the Model N, its sixth prototype electric cargo van, as part of this expansion. Foxconn has big plans for the EV project, despite the small number of orders they’ve received so far.
Foxconn’s head of electric vehicles, Jun Seki, said the company is in talks with 14 prospective clients, with a focus on the Indian and Japanese markets. Foxconn has an ambitious long-term goal of manufacturing nearly half of the world’s EVs by 2021, up from its initial target of 5% of the global EV market by 2025, or about $33 billion in revenue.
Foxconn’s Technology Day and Its Importance
Foxconn’s annual Tech Day celebration is a big deal because it falls on Terry Gou’s birthday. Gou, an independent candidate for president of Taiwan, is a billionaire businessman who resigned as Foxconn’s chief in 2019. He was unable to make it to the event this year, but his ideas and influence are still being felt.
Foxconn’s stock price fell slightly on the day of Tech Day, in line with the general market trend, despite the company’s exciting announcements of a partnership with Nvidia and the unveiling of the Model N electric van. However, Foxconn’s ambitious goals in the EV industry and the long-term potential of the partnership with Nvidia point to a bright future for the company.
See first source: Reuters
FAQ
What is the Foxconn and Nvidia partnership about?
The partnership between Foxconn and Nvidia aims to create “AI factories” that will serve as data processing hubs to boost the intelligence of autonomous electric vehicles and revolutionize various industries.
What is the vision behind the concept of AI factories?
The vision for AI factories is to collect data from autonomous electric vehicles and use it to enhance software and release updates to the entire fleet, improving their intelligence over time. This concept was presented by Foxconn Chairman Liu Young-way and Nvidia CEO Jensen Huang.
How will Nvidia’s hardware and software contribute to these AI factories?
Nvidia’s innovative hardware and software, including the GH200 superchip, will be the foundation of these AI manufacturing facilities. This partnership leverages Nvidia’s technology expertise and Foxconn’s global manufacturing reach to build AI factories worldwide.
What other collaborations have Foxconn and Nvidia announced?
In addition to AI factories, the two companies have announced a partnership to create autonomous vehicle platforms. Foxconn will mass-produce Nvidia’s DRIVE Orin-based automotive electronic control units (ECUs) for global sales, as part of Foxconn’s transition from manufacturing services to platform solutions.
What are Foxconn’s ambitions in the electric vehicle (EV) market?
Foxconn aims to become a dominant player in the growing EV market. They have introduced the Model N, an electric cargo van, and are in talks with prospective clients, with a focus on the Indian and Japanese markets. Foxconn’s long-term goal is to manufacture a significant portion of the world’s EVs.
Why is Foxconn’s annual Tech Day significant?
Foxconn’s annual Tech Day is a major event where the company makes important announcements. It is significant because it reflects Foxconn’s ambitious goals in the EV industry and its partnership with Nvidia, which has the potential to shape the company’s future positively.
Featured Image Credit: Johannes Plenio; Unsplash – Thank you!
