Foxconn: Crazy Demand for Blackwell Chips, Building World's Largest GB200 Factory, Shipments Expected in Q4

Foxconn's parent company, Hon Hai Precision, has announced that it is building the world's largest Nvidia GB200 chip manufacturing plant in Mexico to meet the surging demand for Blackwell chips in the AI market.

On Tuesday, at the annual Foxconn Technology Day, Benjamin Ting, Senior Vice President of Foxconn Cloud Enterprise Solutions Business Group, stated, "We are building the largest GB200 manufacturing plant on Earth. Everyone wants to use Nvidia's Blackwell chips, and the demand is enormous." In a recent interview with Bloomberg, Liu Yangwei said that the market demand for Blackwell chips has reached a "crazy level."

Liu Yangwei, Chairman of Hon Hai, said at the event that the company's supply chain is ready for the AI revolution. Foxconn's manufacturing capabilities include "advanced liquid cooling and heat dissipation technologies required to complement GB200 server infrastructure."

He also stated that Hon Hai is the first company in the world to ship Nvidia GB200 AI chips. Not only chips, but also key components, modules and boards, servers and cabinets, high-performance switches, and even AI data centers, Hon Hai will be the first company to mass-produce and ship products equipped with these super chips.

In an interview with CNBC on Monday, Liu Yangwei said that the company is currently on track to deliver Nvidia GB200 chips in the fourth quarter of 2024.

It is worth noting that Liu Yangwei added that the demand for AI servers has exceeded expectations, and GB200 server shipments may be "slightly delayed."

After the announcement, Hon Hai Precision's Taiwan stock price fell by 1.7% to 194 New Taiwan dollars per share.

The supercomputing center is expected to operate next year.

Nvidia's official website shows that the Blackwell supercomputing center, which it is building in cooperation with Hon Hai, has started construction in Kaohsiung City, Taiwan Province. The first phase of the project is expected to be operational by mid-2025 and will be fully deployed by 2026.Hon Hai's collaboration with Nvidia will be centered around the Blackwell architecture and will utilize the GB200 NVL72 cabinet, a platform that encompasses a total of 64 racks and 4608 Tensor Core GPUs.

Hon Hai plans to reach a production capacity of 20,000 Nvidia NVL72 cabinets by 2025. Terry Gou stated that Hon Hai's vertical integration capabilities, which include advanced liquid cooling and thermal management technologies necessary to support the GB200 server infrastructure, will be based on the GB200 chip. In other words, Nvidia's Blackwell chip will become the core of Hon Hai's Kaohsiung supercomputing center.

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Terry Gou said that artificial intelligence has already integrated into daily life, and AI holds commercial value for businesses. It is evident that the demand for AI is very exciting. Faced with the changes at hand, "Hon Hai's supply chain is ready!"

He pointed out that this AI revolution is not only happening in Hon Hai's factories in Taiwan, China, but also extends to the Americas and Asia, covering Hon Hai's existing facilities, planned factories, and parks under construction.

"Hon Hai started from manufacturing connectors and has now evolved to providing system solutions, continuously developing more complex core technology capabilities."

"AI devices are the next growth opportunity."

Terry Gou stated that the investment boom in AI infrastructure by businesses will continue, as advanced language models like OpenAI become smarter with each new iteration.

"The overall trend in today's technology industry is to develop an AI that is as smart as or even smarter than humans, known as artificial general intelligence (AGI). If intelligence is divided into four different levels, development is still at the second level, so there is still a distance to go before AI is fully mature and widely applied."

He said that the increasing intelligence of AI can only be a good thing for the AI server industry, which is good news for Foxconn's growth this year."I believe that for the AI server industry, we still have some time to develop," he added, "As AGI capabilities continue to grow, AI devices will be another industry we should closely monitor."

The financial report data released by Foxconn on Saturday showed better-than-expected sales. The company's revenue for the third quarter was 1.85 trillion New Taiwan dollars, a year-on-year increase of 20.15%, reaching a record high for the same period in previous years, higher than the widely expected 1.78 trillion New Taiwan dollars by analysts; the net profit for the third quarter was 35 billion New Taiwan dollars, a year-on-year increase of 6%, also setting a record high for the same period in previous years. The company stated that this "exceeded the significant growth initially expected."