Foxconn, the world’s largest server manufacturer, is set to construct a colossal AI server manufacturing facility in Mexico to meet the overwhelming demand for Nvidia’s cutting-edge GB200 system. The Taiwanese company, which controls 40% of the global server market, aims to capitalize on easing supply chain constraints.
Young Liu, Foxconn’s chairman, described the demand for Nvidia’s Blackwell chips as “crazy” during the company’s annual tech day. The planned Mexico factory’s capacity is expected to be “gigantic,” though specific details on the investment and timeline remain undisclosed.
The GB200 system, powered by Nvidia’s Grace Blackwell “superchip,” represents the pinnacle of AI server technology. Its production requires advanced chip packaging techniques from Taiwan Semiconductor Manufacturing Co.
Foxconn’s diverse manufacturing footprint may prove crucial as the concept of “sovereignty servers” gains traction, with countries prioritizing local production for national security reasons. The company’s ability to provide up to 90% of GB200 components positions it favorably in the AI server market.
Despite previous shipment delays due to supply chain issues, Foxconn now claims its supply chain is ready, projecting confidence in its ability to lead the production of these advanced AI servers.