NVIDIA CEO Jensen Huang is expected to visit Taiwan, where he will reportedly attend Foxconn's yearly "Technology Day" event & expand collaboration with the company.
NVIDIA Is Reportedly Planning to Ramp Up "AI Chip Substrate" Orders, With Foxconn Taking The Majority Share
NVIDIA-Foxconn partnership goes a long way back; however, both companies have recently accelerated joint developments, especially after the advent of the generative AI frenzy. Foxconn accounts for a decent share of NVIDIA's server orders, and the company specializes in "chip substrates" as well, which is why it was reported that the company received gigantic orders from Team Green itself. Foxconn's intentions are to dominate NVIDIA's orders and become its "biggest supplier," dethroning the likes of Wistron.
The visit of Jensen will mark new beginnings for a rather extensive collaboration since industry sources report that NVIDIA is planning to ramp up its "order volumes" to Foxconn, leading to an "exclusive" status.
Foxconn's "Industrial Internet" division will be responsible for producing NVIDIA's AI orders, mostly compromising DGX and HGX chip substrates for those a bit confused. It is said that Foxconn has been granted a whopping 50% share of NVIDIA's AI chip substrate orders. You can categorize Foxconn as a "one-stop solution" for Team Green's AI chip modules, substrates, motherboards, servers, or cabinets requirements.
If we look at the fact that Jensen's relations with Taiwanese suppliers have always been deep-rooted, it is evident that Foxconn is the next entrant in the "whole circle," getting included in the likes of TSMC and Wistron. Including Foxconn will definitely aid in NVIDIA's high AI ambitions and generate huge profits for the company since AI chip modules are known to be a "highly profitable" department in the supply chain.
Foxconn has already seen the benefits of the "AI boom," the company reported a massive 1.1 trillion yuan revenue from its server division, with a decent share taken by AI-driven sales. It will be interesting to see how Jensen's visit shapes Foxconn's future in the AI business, but by the looks of it, things will definitely go the right way. The Foxconn Technology Day is scheduled for the 18th of October.
Jensen Huang was also expected to hold a special keynote at the AI Summit in Tel Aviv, Israel, on the 16th of October but those plans have been canceled in light of the recent events in the country.
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