Hon Hai Technology Group (Foxconn) To Build Advanced Computing Center In Taiwan Based On NVIDIA Blackwell Platform

Rhea-AI Summary

Hon Hai Technology Group, also known as Foxconn, announced plans to build an advanced computing center in Kaohsiung, Taiwan, utilizing the NVIDIA Blackwell platform. This collaboration was confirmed at COMPUTEX 2024, where CEOs from both companies reaffirmed their partnership. The center will feature 64 racks and 4,608 GPUs, aiming for completion by 2026. The initiative focuses on driving intelligent ecosystems, including AI, electric vehicles, smart factories, robotics, and smart cities. Foxconn will leverage NVIDIA's AI technology in its smart platforms, and the new center will become a benchmark for AI factories. The project will also utilize NVIDIA Omniverse and Isaac robotics platforms to introduce digital twin technologies for smart manufacturing and other applications.

Positive

• Foxconn's plan to build an advanced computing center in Taiwan signifies a major technological investment.
• The facility will feature 64 racks and 4,608 GPUs, showcasing a significant scale.
• Completion of the center is expected by 2026, indicating a clear timeline for investors.
• The collaboration involves the NVIDIA Blackwell platform, a cutting-edge technology in AI.
• Foxconn's use of NVIDIA's AI technology will enhance smart manufacturing, EVs, and smart cities.
• The project will utilize digital twin technologies, which are at the forefront of manufacturing innovations.
• Foxconn's subsidiary, Foxtron, will implement AI factories, setting a new benchmark in manufacturing.
• The advanced computing center will support generative AI data centers, meeting global demand.
• Foxconn's collaboration with NVIDIA is deepening, potentially leading to more innovative products.
• The project boosts Foxconn's role as a leader in AI servers and generative AI applications.

Negative

• The project has a long timeline, with completion expected only by 2026, which may delay returns.
• There is significant financial risk involved in building such a large-scale computing center.
• Foxconn's reliance on NVIDIA's technology may pose a dependency risk if the partnership faces issues.
• The announcement lacks specific financial details, making it hard to gauge the immediate impact on stock performance.
• Potential delays in construction or technological integration could adversely affect Foxconn's plans.
• The competitive landscape in AI and EV manufacturing is rapidly evolving, posing risks to Foxconn's market position.

Deepens collaboration, drives intelligent ecosystems

TAIPEI, June 4, 2024 /PRNewswire/ -- Hon Hai Technology Group ("Foxconn") (TWSE:2317) today announced that it plans to build an advanced computing center in Kaohsiung, Taiwan, with the NVIDIA Blackwell platform at its core, as the CEOs of the two technology bellwethers reaffirmed their strong partnership at COMPUTEX 2024.

The latest collaboration between Foxconn and NVIDIA signals a deepening commitment by the world's largest electronics manufacturing service provider and market leader in making AI servers, alongside its world-class partner, to drive intelligent ecosystems covering AI, electric vehicles, smart factories, robotics, smart cities and other fields.

NVIDIA founder and CEO Jensen Huang and Foxconn Chairman and CEO Young Liu caught up with each other on the exhibition floor of COMPUTEX, getting a comprehensive tour about their cooperation at the booth set up by Ingrasys, the Foxconn subsidiary that has been at the manufacturing epicenter of NVIDIA's GB200 NVL72, MGX, HGX and other innovative products.

Following the tour, Huang noted that NVIDIA and Foxconn have worked closely together on various product development, and the proof of the cooperation is clear, especially with the Blackwell product line-up; Foxconn has excellent vertical integration capabilities and is a vital partner for the GB200.

On the spot, Chairman Liu announced that Foxconn will join hands with NVIDIA to build an advanced computing center in Kaohsiung with the NVIDIA Blackwell platform at its core. The cutting-edge computing center, anchored by the superchip GB200 servers, consists of a total of 64 racks and 4,608 GPUs, is slated for completion by 2026. NVIDIA's powerful AI technology will drive Foxconn's three smart platforms: Smart Manufacturing. Smart EV. Smart City. Both companies will continue to deepen cooperation in AI, electric vehicles, smart factories, robots, smart cities and other fields, and demonstrate the strong competitiveness brought by AI through Foxconn's huge manufacturing scale.

Huang said, "A new era of computing has dawned, fueled by surging global demand for generative AI data centers. Foxconn stands at the forefront as a leading supplier of NVIDIA computing and a trailblazer in the application of generative AI in manufacturing and robotics. Leveraging NVIDIA Omniverse and Isaac robotics platforms, Foxconn is harnessing cutting-edge AI and digital twin technologies to construct their advanced computing center in Kaohsiung."

The two companies will utilize NVIDIA Omniverse and create digital twins to introduce platforms for smart manufacturing, smart electric vehicles, and smart cities. For smart manufacturing platforms, image recognition technology, combined with the Group's autonomous mobile robots (AMR), will lead to changes for optimal capacity utilization. The production line planning will encompass existing manufacturing of AI servers and EV assembly plants. 

Toward that goal, the new Qiaotou automotive manufacturing facilities of Foxtron, a Foxconn subsidiary, will become one of the Group's benchmark AI factories. Currently under construction, the site will utilize digital twin connected to cloud technologies and achieve collaboration between virtual and physical production lines. Digital real-time monitoring will ensure the manufacturing excellence of an award-winning electric bus, which is currently seeing orders outpacing output capacity.

Going forward, the two companies' collaborative effort in EV ADAS platform will be applied to future EV models designed by Foxconn. Presently, Foxconn is negotiating projects with traditional European and American automakers. Moreover, based on NVIDIA's new generation of chips, Foxconn and NVIDIA jointly plan a "cabin-driving-in-one" smart travel solution, creating a third living space.

About Foxconn here.

View original content:https://www.prnewswire.com/news-releases/hon-hai-technology-group-foxconn-to-build-advanced-computing-center-in-taiwan-based-on-nvidia-blackwell-platform-302162841.html

SOURCE Hon Hai Technology Group (Foxconn)

FAQ

What is the significance of Foxconn's new computing center in Taiwan?

Foxconn's new computing center in Taiwan, based on the NVIDIA Blackwell platform, aims to drive intelligent ecosystems including AI, electric vehicles, and smart cities.

When is the completion date for Foxconn's advanced computing center?

The advanced computing center is slated for completion by 2026.

How many GPUs will be featured in Foxconn's computing center?

Foxconn's computing center will feature a total of 4,608 GPUs.

What technologies will Foxconn leverage for their new computing center?

Foxconn will leverage NVIDIA's AI technology, including the Omniverse and Isaac robotics platforms, for their new computing center.

What are the main applications of Foxconn's new computing center?

The main applications include smart manufacturing, electric vehicles, smart cities, and robotics.

How will Foxconn's computing center impact its manufacturing processes?

The computing center will use digital twin technologies to introduce smart manufacturing, enhancing capacity utilization and production line planning.

What is the role of Foxtron in Foxconn's new project?

Foxtron, a Foxconn subsidiary, will implement AI factories and use digital twin technologies for electric vehicle manufacturing.

How will the collaboration between Foxconn and NVIDIA benefit the companies?

The collaboration will deepen their partnership, leveraging each company's strengths in AI and manufacturing to drive innovation and competitiveness.

What are the risks associated with Foxconn's new computing center?

Risks include financial investment, long timeline until completion, dependency on NVIDIA, and the competitive landscape in AI and EV manufacturing.