Taiwanese tech giant Foxconn and US hardware leader Nvidia said Wednesday they would team up to develop “AI factories,” powerful data processing centers that will drive the manufacturing of next-generation products such as electric cars. The world’s largest contract electronics maker, Foxconn — officially known as Hon Hai Technology Group — already plays a lynchpin role in assembling gadgets for top global brands, including Apple’s iPhone. The tie-up with Nvidia, a company that made its name developing graphics processing units — GPUs — for video games, could also help it expand into new industries. “A new type of manufacturing has emerged – the production of intelligence,” Nvidia co-founder and CEO Jensen Huang told a joint stage appearance at Foxconn’s annual tech event in Taipei. “The data centers that produce this intelligence are called AI factories, and we will be helping the entire industry move much faster into this new era.”
Nvidia said the collaboration would see it build a range of systems for Foxconn, starting with three platforms: Smart EV, Smart Manufacturing, and Smart City. These will use Nvidia’s accelerated computing platform, including its GPU chips and AI Enterprise software. These systems will allow Foxconn to accomplish AI training and inference, improve factory workflows, and run simulations of robots and other equipment before deploying them on-site, saving time and money.
The tie-up with Nvidia builds on an earlier one between the two companies, announced in January, in which Foxconn agreed to become a primary supplier of automakers’ electronic control units for autonomous driving functions. The ECUs will be built with Nvidia’s Drive Orin system-on-chip, which uses deep learning to process and analyze sensor input and other information for autonomous driving functions.
A second element of the partnership between Nvidia and Foxconn will involve a joint research program to accelerate the development of intelligent robots for factories and warehouses. These robots can perform tasks that humans can’t, such as delivering items and picking them up from shelves or navigating complex environments. They will also learn from their mistakes and improve their performance over time, potentially boosting productivity and cutting labor costs.
The collaboration comes just days after the United States unveiled new curbs on exports of state-of-the-art chips to China to prevent Beijing from advancing its self-driving car industry. The move will hit Foxconn, which relies on China for its most advanced chip designs, pushing Nvidia’s shares lower on Wall Street. Huang said that the two companies will work together to ensure that Foxconn has enough of the latest Nvidia GPUs to meet its requirements. He added that it would be an essential partnership for Nvidia because of China’s “increasing demand for AI.” It is also a crucial alliance for both companies as they battle US trade disputes and face growing competition from China in AI.