In a bid to propel innovation and diversify their businesses, Nvidia, a leading US tech company, and Taiwan’s Foxconn, renowned for manufacturing iPhones, have forged a groundbreaking partnership to establish “artificial intelligence factories.” These state-of-the-art “AI factories” will serve as extensive data centers focused on training autonomous vehicles, robotic systems, and advanced language models. This partnership gains added importance due to recent US restrictions on exporting AI chips to China, affecting tech companies like Nvidia. The collaboration primarily involves using Nvidia’s advanced computer chips and software to build cutting-edge data centers with a wide range of uses. Foxconn, known for electronics manufacturing, is strategically transitioning into a key player in the tech industry by facilitating computing infrastructure for autonomous technologies, such as self-driving vehicles.

For Foxconn, primarily known for assembling Apple’s iPhones, this partnership marks an ambitious venture into the burgeoning electric vehicle (EV) sector. Unlike traditional car manufacturers, Foxconn does not plan to market its own brand of EVs. Instead, it aspires to serve as a global manufacturing hub for electric vehicles, targeting both the Taiwanese market and international clients. As the smartphone market reaches saturation, this move into the EV industry is seen as a logical diversification strategy. Foxconn envisions playing a significant role in the global EV market, striving to produce a substantial percentage of electric cars worldwide. To realize this vision, the company is not only hiring experienced executives but also collaborating with experts in the automotive industry, leveraging its rich background in consumer electronics to bring innovative approaches to EV production.