Foxconn Enters the AI Race, Manages to Obtain Huge Chip Substrate Order From NVIDIA

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After being the special supplier to Apple, Foxconn has set its sights on NVIDIA, intending to take its share from the AI craze.

Foxconn Aims at Capitalizing the AI Hype Through NVIDIA, Sees Immense Market Potential

Korean media outlets report that Foxconn has actually apparently acquired AI-based orders from NVIDIA, with a majority of them being based upon chip substrates. For those who aren’t familiar with the “chip substrates” term, it is generally called the packaging procedure and holds substantial significance, particularly for NVIDIA’s AI GPUs. The bulk share accounts for NVIDIA’s HGX/DGX supercomputers, which are currently in high demand, and are categorized as the “holy grail” in the market.

Foxconn is expected to officially reveal the partnership with NVIDIA throughout its approaching presentation in Taiwan, where the company will also talk about advancements on Apple’s upcoming iPhone 15 lineup. Foxconn aims at becoming the “greatest chip substrate provider of NVIDIA”, developing its supremacy among competitors like Wistron. For information, Foxconn’s department Fii (Foxconn Industrial Internet), has taken duty to fulfill DGX and HGX orders.

NVIDIA seeks to diversify its supply chain since the company expects the AI buzz to extend for a years. To avoid scenarios such as order stockpiles and production traffic jams, NVIDIA is likewise looking out for possible suppliers, with the names Samsung and Micron topping their list.

Foxconn expects remarkable development through AI, with Chairman Young Liu, anticipating the demand for calculating power to dramatically increase. Foxconn reportedly gained 1.1 trillion yuan in profits from its server organization, with 20% accounting through AI-driven sales.

The AI market is getting more competitive day by day, with reports of companies racing each other to develop supremacy. We just recently reported AMD’s strategies to introduce “cut-down” MI300 Instinct AI GPUs into Chinese markets, along with hinting next-gen MI400 release. With that said, we are certainly in for an excitement ride, and I can’t wait to see what the industry keeps in the future.

News Source: United Daily News

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