Apple will use 'made in Vietnam' AI servers supplied by Foxconn Industrial Internet. |
Foxconn is the largest supplier of servers used in tech giant Apple’s data centers. Foxconn accounts for about 43% of the global server market. In addition, FII also supplies servers to Amazon, OpenAI (developer of the ChatGPT chatbot) and Nvidia (the world’s most valuable chipmaker).
It can be seen that Apple is increasing the diversification of its supply chain and moving away from the Chinese market. In addition, it also emphasizes the AI ambitions of the Apple company.
According to Bloomberg, Apple is also developing its own generative AI tool called Apple GPT. During the quarterly business results conference call last week, CEO Tim Cook confirmed that the company has been researching various AI technologies for many years, including generative AI.
Previously, also in a meeting reporting Foxconn's first-quarter 2023 business results, Chairman and CEO Liu Young Way was quite 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 the Chinese market.
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 to Apple.
Foxconn not only serves Apple, but also invests in a number of other business segments here. Foxconn's investment plans in Vietnam include projects related to electric car components, according to Reuters.
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