Taiwanese electronics manufacturer Foxconn has revealed plans to construct artificial intelligence (AI) data factories in partnership with U.S. chip giant Nvidia. The announcement signals Foxconn's increasing commitment to becoming a major player in global electric vehicle (EV) manufacturing. During the announcement in Taipei, Foxconn Chairman Young Liu and Nvidia CEO Jensen Huang outlined their strategy. By utilizing Nvidia's chips and software, these new facilities aim to enhance AI implementation in Foxconn's EVs.
The collaboration emphasizes the potential of large computing systems empowered by advanced chips to develop software platforms for the next generation of EVs through AI learning from everyday interactions. Foxconn's transformation from a manufacturing service company into a platform solution company is at the core of this endeavor. In just three years, the company has presented an array of high-end sedan, passenger crossover, SUV, compact pick-up, commercial bus, and commercial van designs. Like its approach in assembling Apple's iPhones, Foxconn plans to build EVs for clients in Taiwan and globally without establishing its own brand.
In 2021, Foxconn introduced three EV models, and it unveiled additional models in 2022. On Foxconn's tech day, two new models, Model N (a cargo van) and Model B (a compact SUV), were introduced. The company's electric buses have been operating in Kaohsiung, Taiwan, since last year, and its first electric car, the N7, produced in collaboration with Taiwanese automaker Luxgen, is set for island deliveries in January 2024. With global EV sales exceeding 10 million units in 2022, reflecting a 55% increase from 2021, the EV industry remains highly competitive, with projections of nearly 14 million electric cars to be sold in 2023, according to the International Energy Agency.