The cooperation of the largest iPhone manufacturer in the world with the most important chip manufacturer in the world

Nvidia, the world’s most valuable chip maker, and Foxconn, the world’s largest iPhone maker, will work together to build an artificial intelligence factory. According to the two companies, the factory is intended to be a new type of data center that uses Nvidia’s chips to power a wide range of applications in areas such as autonomous vehicle manufacturing, robotics platforms and language issues, moving toward intelligent manufacturing. And the construction of smart cities is moving. This cooperation will greatly affect the shares of both companies.

Confirmation of the news at the annual Foxconn technology exhibition

Foxconn CEO Yang Liu and Taiwanese-born Nvidia CEO Jensen Huang confirmed the news at Foxconn, the annual tech show.

According to Hoshio, during this exhibition, Jensen Huang stated that: “Information production is a type of production that has recently emerged, and its production centers are artificial intelligence factories.”

Also, while mentioning that smart production and building smart cities will be one of the applications of this factory, Liu stated that Foxconn is trying to transform itself from a company with the purpose of manufacturing services to a platform company.

stocks value

Thanks to the use of Nvidia’s advanced chips in artificial intelligence applications, the company’s stock value has grown significantly this year, so that the company’s stock value has reached more than one trillion dollars this year. This amount represents a three-fold growth in the company’s stock and has made Nvidia the fifth American company to join the trillion-dollar club, along with Apple, Microsoft, Alphabet and Amazon.

Foxconn, which produces more than half of Apple’s products worldwide, is trying to repeat its success in assembling personal computers and smart phones with this collaboration, and is trying to diversify its business and expand its scope of work.

In an exclusive interview with the BBC in June, Liu previously hinted that electric vehicles (EVs) will drive the company’s growth in the coming decades.

All this while the United States plans to stop exporting advanced chips to China. This action is a big blow for Nvidia and will cause many problems for it.

According to the company, the latest export restrictions announced by Washington last week will block the sale of two chips, A800 and H800, manufactured by Nvidia, in the Chinese market. This is a big loss for Nvidia and will limit its market.

Conclusion

At the annual Foxconn technology exhibition, Jensen Huang, the CEO of Nvidia and Yang Liu, the head of Foxconn, confirmed their cooperation to build an artificial intelligence factory. This bilateral cooperation is supposed to take place towards the production of autonomous vehicles, language models and robotic platforms. Liu also stated that Foxconn is trying to change its nature from a manufacturing service company to a platform company.