First it was the vice president of the Taiwanese company Hon Hai (Foxconn)—the largest electronic products assembler in the world—who announced this Wednesday that “the largest production facility on the planet” of the superchips GB200 from the American company Nvidia. He couldn’t say exactly where, but a few minutes later, Foxconn president Young Liu assured reporters during the inauguration of the Hon Hai Tech Day 2024the Taiwanese firm’s annual technology conference, that that plant was being built in Mexico. The managers have not specified the location, but assured that the factory is up and running.
This Asian company, whose official name is Hon Hai Precision Industry, is the world’s largest contract electronics manufacturer and the main iPhone assembler on the planet. Nvidia, the American microprocessor company, does not make its own chips, and instead uses subcontractors. In 2023, Foxconn announced its alliance with Nvidia to create “AI factories”, spaces in which data is processed that will drive the creation of new generation products. This Mexican branch is part of said plan.
Nvidia’s GB200 chips, which will be manufactured in Mexico, still without knowing specifically where in the country, are part of the Blackwell family, a new generation of Artificial Intelligence (AI) processors that has already placed the American company in a privileged place in the market. “The demand (for the Blackwell platform) is terribly huge,” said Foxconn vice president Benjamin Ting. Blackwells are processing units specialized in performing calculation operations at high speeds. In addition, specialized media have cataloged them as part of the definition of “the next chapter in generative AI with incomparable performance, efficiency and scale.”
Nvidia’s market capitalization had suffered a setback last August, when a technology outlet said that the launch of servers with GB200 chips would be delayed by three months or more due to unexpected design flaws. At Foxconn’s latest investor conference, company spokesperson James Wu assured that there were no delays in shipping these servers and that work with its American partner would continue as scheduled in the fourth quarter: “Hon Hai will definitely will be the world’s first GB200 server provider,” he said.
Foxconn already has a significant manufacturing presence in Mexico. On one of your sites business on the internet, Foxconn assures: “We are located in the city of Tijuana, Baja California, Mexico; forming part of the largest electronics manufacturer in the world, being one of the companies with the highest level of integration in the region.” The company says it employs more than 5,000 people in the country.
According to the news agency Reuters The company has so far invested more than 500 million dollars in the State of Chihuahua, in the north of the country. Last August, through one of its affiliates in Singapore, Foxconn announced that it would increase its shareholding in its subsidiary in Mexico, Foxconn Industrial Internet AMC Mexico, for a total of $241.2 million. Last February, the company also invested 453 million Mexican pesos (about 23.4 million dollars) through its subsidiary in the country to buy a 421,600 square meter plot of land in Jalisco, as part of the expansion of its international production. of AI servers.
The Taiwanese company has benefited from the current development of artificial intelligence: its income in the first nine months of the year totaled some 146,891 million dollars (133,673 million euros), an advance of 9.73% compared to the same period of the year past. In March, Foxconn president and CEO Young Liu predicted that the company will increase its revenue by 40% this year in the AI-based server segment, leading to an upward revision of its growth prospects for 2024.
Foxconn—a company founded in 1974—is the world’s largest contract electronics manufacturer, with factories and research centers in China, India, Japan, Vietnam and the United States.
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