Hon Hai Precision Industry Co (鴻海精密), the world’s biggest electronics manufacturer, yesterday said it is expanding production capacity of artificial intelligence (AI) servers based on Nvidia Corp’s Blackwell chips in Taiwan, the US and Mexico to cope with rising demand.
Hon Hai’s new AI-enabled factories are to use Nvidia’s Omnivores platform to create 3D digital twins to plan and simulate automated production lines at a factory in Hsinchu, the company said in a statement.
Nvidia’s Omnivores platform is for developing industrial AI simulation applications and helps bring facilities online faster.
Photo: CNA
Hon Hai’s Mexican facility is to begin production early next year and the Taiwan site is to enter production next month, Nvidia wrote on its blog.
The Mexican facility could deliver significant cost savings and achieve a reduction in kilowatt-hour usage of more than 30 percent annually, it said.
Hon Hai, which ships 40 percent of global servers, said it is the world’s first manufacturer of the Blackwell devices.
The firm said it expects production volume to rise next quarter.
In a separate statement, Hon Hai said it has won best-applicant status in a land development project in Kaohsiung, having invested NT$15.9 billion (US$490.44 million) in conjunction with the Kaohsiung Mass Rapid Transit Bureau.
The investment set a record for joint land development projects with the Kaohsiung City Government.
Hon Hai plans to build a 45-floor office building and a 32-floor residential-commercial complex at the site, which is to house its new southern Taiwan flagship headquarters, the company said, adding that demand for talent is growing along with its expansion in Kaohsiung.
The project is part of Hon Hai’s broader investment plans in the city, it said.
The company last year said it planned to invest NT$25 billion in the city in the following three years, including a software research and development center, an electric bus manufacturing facility, a large advanced AI computing center and a battery manufacturing center.
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