Taiwanese chipmaker Foxconn plans to build one of the world’s largest assembly plants for US tech company Nvidia in Guadalajara, Mexico, Reuters reports.
The plant will bundle Nvidia’s GB200 superchips for Nvidia’s Blackwell next-generation AI platform.
Nvidia says it will allow users to “build and run real-time generative AI on trillion-parameter large language models at up to 25x less cost and energy consumption than its predecessor”.
Nvidia expects several billion dollars in revenue from its Blackwell line in the fourth quarter.
Foxconn chair Young Liu said demand for Blackwell was “crazy” and that the factory would be “very, very enormous”, although he did not say what its investment value would be.
The world’s largest company of its type, Foxconn has been benefiting from the AI boom as it assembles servers used to process AI work.
It has invested around $500m in the state of Chihuahua.
Young Liu said the company’s supply chain was ready for the AI revolution, adding its manufacturing capabilities include the “advanced liquid cooling and heat dissipation technologies necessary to complement the GB200 server’s infrastructure”.
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