Nvidia, a prominent US tech company, and Foxconn, a well-known manufacturer of iPhones based in Taiwan, have entered into a groundbreaking partnership aimed at establishing advanced “artificial intelligence factories.” These cutting-edge “AI factories” will function as extensive data centers with a primary focus on training autonomous vehicles, robotic systems, and advanced language models. This partnership has gained increased significance due to recent US restrictions on exporting AI chips to China, impacting companies like Nvidia. The collaboration harnesses Nvidia’s advanced computer chips and software to build cutting-edge data centers with diverse applications. Foxconn, known for iPhone assembly, strategically shifts toward a significant role in the tech industry, focusing on providing computing infrastructure for autonomous technologies, especially in self-driving vehicles.

For Foxconn, traditionally known for assembling iPhones, this marks a bold entry into the booming electric vehicle (EV) sector. Unlike conventional car manufacturers, Foxconn plans to become a global hub for EV manufacturing, serving both local and international markets. This shift from smartphones to EVs is seen as a logical move due to the saturation of the smartphone market. Foxconn aims to play a significant role in the global EV industry, producing a substantial number of electric cars worldwide. To achieve this, the company is not only hiring experienced executives but also collaborating with automotive experts, leveraging its background in consumer electronics for innovative EV production.