Hon Hai Precision Industry Co., better known as Foxconn, is constructing the world’s largest manufacturing facility for Nvidia’s latest AI chips in Mexico. The move comes as demand for these powerful processors continues to surge beyond expectations.
Young Liu, Foxconn’s chairman, told Bloomberg Television that demand for Nvidia’s next-generation Blackwell chips was “crazy.” The facility will focus on assembling servers housing Nvidia’s advanced Grace Blackwell chips.
According to Liu, the plant will have a planned capacity of 20,000 GB200 NVL 72 servers in 2025. This is the first time Foxconn has disclosed the scale of this operation.
“There was a lot of talk that the need for compute may be saturated pretty soon. But it looks like the demand is still growing. So that’s beyond our expectations,” Liu said.
The GB200 is a powerhouse chip that combines two Blackwell B200 GPUs and one Grace CPU, designed for complex AI tasks like training large language models. However, Liu noted a “hiccup” in the production of GB200 servers, confirming a delay in Blackwell supply. Shipments are now expected to start in the late fourth quarter instead of early in the October-December period.
Despite this setback, Nvidia’s CFO Colette Kress stated in August that the company expects to ship several billion dollars worth of Blackwell chips in its fiscal fourth quarter.
This partnership extends beyond chip production. Foxconn and Nvidia are also collaborating on Taiwan’s largest supercomputer, the Hon Hai Kaohsiung Super Computing Center, expected to be fully operational by 2026.
As companies continue to rapidly adopt AI, there is a growing demand for specialized chips. Foxconn’s new mega-factory is a clear indication that the AI industry is still booming. The success of this investment is yet to be determined, but for now, Nvidia and its partners are working hard to meet the increasing demands of this rapidly growing market.
Dwayne Cubbins
486 Posts
For nearly a decade, I've been deciphering the complexities of the tech world, with a particular passion for helping users navigate the ever-changing tech landscape. From crafting in-depth guides that unlock your phone's hidden potential to uncovering and explaining the latest bugs and glitches, I make sure you get the most out of your devices. And yes, you might occasionally find me ranting about some truly frustrating tech mishaps.
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