The world's largest Nvidia Superchip facility will be built by Foxconn in Mexico

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Important Takeaways

• In Mexico, Foxconn plans to construct the biggest production plant globally for Nvidia's GB200 Superchips.

• Foxconn's growth is in line with Nvidia's Blackwell platform, which is anticipated to produce substantial income in the upcoming months.

• This year, the company anticipates a 40% increase in its global market share for AI servers. 

Foxconn, a significant international electronics manufacturer, has declared intentions to build a massive plant in Mexico to manufacture Nvidia's GB200 Superchips. 

According to Reuters, this action is intended to satisfy the rising need for artificial intelligence (AI) systems.

A high-end system-on-chip (SoC) with integrated sophisticated CPU and GPU capabilities is Nvidia's GB200 Superchip. Alongside the B200, it is a component of Nvidia's new Blackwell architecture, which outperforms earlier models like the H100. The GB200 is built to efficiently tackle large AI tasks by combining Blackwell Tensor Core GPUs with a 72-core Grace CPU.

Riding the AI Wave

The new manufacturing factory in Mexico is planned to become the largest production site for Nvidia’s GB200 Superchip, geared for AI and server applications.

Foxconn is a major player in the Mexican manufacturing market, having invested more than $500 million in its Chihuahua facilities. The new building will increase Foxconn's presence in the nation and serve as the world's largest production location for Nvidia's GB200 Superchip.

The expansion has been planned to take advantage of the growing AI sector.

Benjamin Ting, Senior Vice President for Cloud Enterprise Solutions at Foxconn, highlighted the strong demand for Nvidia's Blackwell platform in support of his optimism for the project's outcome. By the end of the fourth quarter, Nvidia anticipates generating billions of dollars in sales from these new chips, having started distributing Blackwell samples to customers in August.

The largest contract electronics manufacturer in the world for major companies, including Apple, the maker of the iPhone, is Foxconn. The IT company has been making use of its current resources to assemble AI servers, which are essential for enabling AI calculations.

Foxconn made this decision in anticipation of a 40% growth in its global market share for AI servers this year. Additionally, according to the corporation, this business area has the potential to generate more than 40% of its total server revenue.