According to the Economic Daily News, Foxconn Industrial Internet (FII), a subsidiary of Foxconn, will exclusively supply servers made in Vietnam to Apple for training and testing AI services.
Foxconn is not only the world's largest electronics manufacturer and a famous iPhone assembly partner, but it is also Apple's largest supplier of servers used in data centers. Foxconn accounts for about 43% of the global server market.
According to the article, FII also provides servers for Amazon, OpenAI (developer of chatbot ChatGPT), Nvidia (the world's most valuable chip maker).
The news shows that Apple is increasingly diversifying its supply chain away from China. It also highlights the iPhone maker's AI ambitions.
According to Bloomberg, Apple is developing its own generative AI tool called Apple GPT. Generative AI tools are algorithms used to create new content such as audio, images, text, video, etc. During the quarterly business results report meeting last week, CEO Tim Cook confirmed that the company has been researching various AI technologies for many years, including generative AI.
“We see AI and machine learning as fundamental, integral technologies in almost every product we make,” he remarked, noting that AI is already being used in product and operating system development at Apple.
Earlier, in Foxconn's Q1/2023 business results report, Chairman and CEO Liu Young Way was optimistic about the demand for AI servers. He shared that the company's server revenue reached 43.6 billion USD in 2022. At the same time, Foxconn continued to expand investment in electronics manufacturing capacity outside of China.
The company recently signed a letter of intent to invest over $600 million in India for an FII smartphone casing manufacturing plant and a semiconductor equipment project, according to a senior Karnataka state official.
In Vietnam, Foxconn produces iPads and AirPods at a $300 million factory built last year.
Based on Apple's 2022 supplier list, there are at least 25 factories in Vietnam providing a range of manufacturing services for the "bitten apple".
Foxconn not only serves Apple, but also invests in other business segments here. Foxconn's investment plans in Vietnam include projects related to electric car components, according to Reuters.
(According to SCMP)
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