Foxconn to build world's largest Nvidia GB200 chips facility in Mexico
Foxconn already has a huge presence in Mexico, having invested over $500 million in the state of Chihuahua
Foxconn is constructing the world's largest manufacturing plant for Nvidia's GB200 chips, according to a Reuters report.
"We're establishing the biggest GB200 production facility globally," Benjamin Ting, Foxconn's senior vice-president for the cloud enterprise solutions group, said during the company's annual tech event in Taipei on Tuesday (October 8), according to the report. The facility will come up in Mexico.
Blackwell chips
Foxconn assembles servers crucial for AI processing. In August, Nvidia announced it had begun shipping samples of its Blackwell chips to partners and customers after refining the design, expecting billions in revenue from these chips in the fourth quarter.
Also Read: Foxconn working on plans to set up battery energy storage system unit in India
Ting asserted the importance of the collaboration with Nvidia, noting the high demand for the Blackwell platform. "The demand is massive," he reportedly said at Foxconn's annual tech day in Taipei, where he stood alongside Nvidia's vice-president for AI and robotics, Deepu Talla. Later, Foxconn Chairman Young Liu revealed that the facility producing the chips would be located in Mexico, with a "very, very enormous" capacity, though he did not provide further details, says Reuters.
Huge presence in Mexico
Foxconn already has a huge presence in Mexico, having invested over $500 million in the state of Chihuahua. Liu also pointed out that Foxconn's supply chain is well-prepared for the AI era, with the company offering advanced liquid cooling and heat dissipation technologies to support the infrastructure for Nvidia’s GB200 servers.
Looking ahead, Liu stated that Foxconn’s outlook for the current quarter is strong, though he didn’t offer specifics. Over the weekend, the company reported its highest-ever third-quarter revenue, driven by robust demand for AI servers.
Also Read: Foxconn business in India crosses $10 billion mark; invests $1.4 billion till date
Beyond its traditional role in consumer electronics, Foxconn is actively diversifying. It plans to leverage its tech expertise to venture into electric vehicle (EV) manufacturing through its Foxtron brand. When asked about the challenges in the competitive EV market, especially with demand slowing, Liu reportedly reaffirmed the company's commitment.
"This is the right direction, and we will continue to pursue it," he reportedly said, adding that EV production removes the traditional "engine barrier" in car manufacturing, allowing automakers to outsource more components. "They don’t need to build the entire car themselves anymore," he told Reuters.
