Following Foxconn’s substantial order for the assembly of NVIDIA’s GB200 AI servers, according to a report from Economic Daily News, Foxconn has now exclusively secured a major order for the NVLink Switch, a key component of the GB200 renowned for enhancing computing power. The volume of this order is estimated to be seven times that of the server cabinets. Not only is this a brand new order, but it also carries a significantly higher gross profit margin compared to server assembly, the report noted.

While Foxconn does not comment on orders and customers, industry sources cited by the same report highlight that NVLink is an exclusive NVIDIA technology consisting of two parts. The first is the bridge technology, which connects the central processing unit (CPU) with the AI chip (GPU). The second is the switch technology, which is crucial for interconnecting GPUs, enabling thousands of GPUs to combine in operation, thereby maximizing their collective computing power.

Industry sources cited by Economic Daily News have stated that the key feature of the GB200 is not just its significant computing power but also its high-speed transmission capabilities. NVLink is considered the magic ingredient for enhancing this computing power.

Reportedly, the primary reason Foxconn has secured the exclusive order for NVIDIA’s NVLink is due to their long-standing cooperation and mutual understanding. Foxconn has been a leading manufacturer for network communication equipment for years, making it a reasonable choice for NVIDIA to entrust with these orders.

Industry sources cited by the report further claim that as each server cabinet requires seven NVLinks, this new order means that for every GB200 server cabinet produced, Foxconn receives an order for seven NVLink switches. Given that the profit margin for switches is considerably higher than for server assembly, this order is expected to significantly boost Foxconn’s operations.

Per the report, the world’s top seven switch manufacturers, including Dell, HP, Cisco, Nokia, and Ericsson, are all clients of Foxconn. This has enabled Foxconn to secure over 75% of the global market share in switches, firmly establishing its leading position.

Regarding the AI server market, Foxconn’s Chairman Young Liu previously revealed that the GB200 is in high demand, and he anticipates that Foxconn’s market share in AI servers could reach 40% this year.

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(Photo credit: NVIDIA)

The 2024 Computex Taipei has kicked off, with NVIDIA CEO Jensen Huang delivering a speech on the industry’s prospects and future amidst the AI wave. According to a report from Commercial Times, during a media interview on the evening of June 3, Huang revealed plans for NVIDIA to establish an R&D center in Taiwan within the next five years.

Jensen Huang pointed out that NVIDIA already has a great AI research team. He confirmed the importance of Taiwanese partners, stating that TSMC is very important to NVIDIA’s operations, as well as expressing gratitude to partners such as Foxconn, Quanta, and ASUS for their support.

Huang further mentioned that within the next five years, NVIDIA will set up a large design center in Taiwan, indicating that the GPU giant is looking for a very spacious location and will hire at least 1,000 engineers.

When asked by the media about the speculation regarding his meeting with AMD CEO Lisa Su, Huang revealed that he did not attend her speech but acknowledged that AMD is a great company. He mentioned that he doesn’t expect to meet Su but didn’t rule it out the possiblity completely, adding that if it happens, he would welcome it.

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(Photo credit: AMD)

During NVIDIA founder and CEO Jensen Huang’s keynote speech on June 2, he shared insights on how the AI era is driving the development of a new global industrial revolution.

According to a report from TechNews, he covered various technologies and application areas, including advancements in accelerated computing, microservices, industrial digitalization, and consumer devices, which are expected to become key focus areas in the evolving AI market.

• Accelerated Computing

1. Collaboration between the computer industry and NVIDIA to build AI factories and data centers: NVIDIA and leading computer manufacturers worldwide announced today the launch of a series of systems based on the NVIDIA Blackwell architecture. These systems feature Grace CPUs, NVIDIA networking technologies, and infrastructures to assist enterprises in establishing AI factories and data centers.

2. Foxconn utilizes NVIDIA artificial intelligence and Omniverse technology to train robots and streamline assembly operations: Foxconn operates over 170 plants worldwide, with its latest being a virtual plant driving the latest developments in industrial automation technology.

The latest of Foxconn’s plant is a digital twin model of a new factory in Guadalajara, Mexico, a hub for the electronics industry. Engineers at Foxconn define processes and train robots in this virtual environment to enable physical factories to efficiently produce the next generation of accelerated computing engines, the NVIDIA Blackwell HGX system.

3. NVIDIA significantly strengthens Ethernet networks for generative artificial intelligence: NVIDIA announced widespread adoption of the NVIDIA Spectrum-X Ethernet platform and will accelerate the release of new products. CoreWeave, GMO Internet Group, Lambda, Scaleway, STPX Global, and Yotta are the first batch of AI cloud service providers to adopt NVIDIA Spectrum-X, bringing ultimate network performance to their AI infrastructure.

Additionally, NVIDIA’s partners have also released products utilizing the Spectrum platform, including ASRock Rack, ASUS, GIGABYTE Technology, Ingrasys Inc., Inventec, Quanta Cloud Technology, Wistron and Wiwynn. Moreover, Dell Technologies, Hewlett Packard Enterprise, Lenovo, and Super Micro Computer have collaborated with NVIDIA to incorporate the Spectrum platform into their respective products.

• Microservices

NVIDIA NIM has revolutionized deployment model: NVIDIA has announced that its inference microservice, NVIDIA NIM, optimized in container form, is now available for download by 28 million developers worldwide.

This allows deployment to cloud, data centers, or workstations, enabling developers to effortlessly build generative artificial intelligence applications for assisting partners, such as copilots and chatbots, within minutes, a process that previously took several weeks.

• Industrial Digitalization

1. Electronics manufacturers adopt NVIDIA AI and Omniverse to drive robotic factories and accelerate industrial digitization: NVIDIA announced that major Taiwanese electronics manufacturers, including Delta Electronics, Foxconn, Pegatron Corporation, and Wistron Corporation, are using NVIDIA’s technology to transform their factories into more autonomous production facilities through new reference workflows.

This workflow combines NVIDIA Metropolis visual artificial intelligence (AI) technology, NVIDIA Omniverse’ physically accurate rendering and simulation technology, and NVIDIA Isaac’s AI robot development and deployment technology.

2. Industry leaders adopt NVIDIA’s robotic technology to develop tens of millions of AI-supported autonomous machines, including BYD Electronics, Siemens, Teradyne Robotics, and Alphabet’s Intrinsic, among more than ten global leading companies in the robotics industry.

These companies integrate NVIDIA Isaac acceleration libraries, physically principled simulation content, and AI models into their software frameworks and robot models to enhance efficiency in factories, warehouses, and distribution centers. This enables human colleagues to work in safer environments and serves as intelligent assistants in executing repetitive or ultra-precise tasks.

3. NVIDIA introduces NVIDIA IGX with Holoscan support, enabling enterprise software to run medical, industrial, and scientific artificial intelligence applications in real-time at the edge: To meet the growing demand for real-time artificial intelligence computing technology at the industrial edge, NVIDIA announces the comprehensive launch of NVIDIA AI Enterprise-IGX software with Holoscan on the NVIDIA IGX platform.

• Consumer Devices

1. NVIDIA utilizes GeForce RTX AI PC to deliver the real AI assistant experience: NVIDIA announces the launch of the new NVIDIA RTX technology, designed to support AI assistants and digital human platforms running on new GeForce RTX AI laptops.

2. NVIDIA introduces Digital Human Microservices to lay the foundation for future generative AI digital avatars: NVIDIA announces the comprehensive rollout of NVIDIA ACE generative artificial intelligence microservices to accelerate the development of the next wave of digital humans and numerous breakthroughs in generative AI soon to be introduced on the platform.

Companies in customer service, gaming, and healthcare sectors are among the first to adopt ACE technology, making it easier to create, personalize, and interact with realistic digital humans. These microservices have broad applications in customer service, telehealth, gaming, and entertainment.

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(Photo credit: NVIDIA)

Astera Labs, a leading provider of AI server connectivity solutions, has announced that it will gather Taiwanese manufacturers to establish its first Cloud-Scale Interop Lab outside of Silicon Valley in Taiwan. According to a report from Commercial Times, the company will closely collaborate with major Taiwanese ODM clients, while key manufacturers such as Quanta, Inventec, Wistron, Wiwynn, and Foxconn are expected to benefit from this initiative.

The emerging AI company Astera Labs has surpassed a market value of USD 10 billion and is renowned for providing high-speed transmission interface solutions for AI servers. Founded in 2017, the company celebrated its new public listing on NASDAQ this March.

Per a report from Business Today, the company, headquartered in California, USA, specializes in Retimer chips used for transmission in cloud data centers. These chips mitigate electronic signal attenuation issues, making them widely adopted in the market following PCIe Gen 5.

In response to the rapid expansion of the AI server market, Astera Labs is following in NVIDIA’s footsteps by establishing an R&D center, the Cloud-Scale Interop Lab, in Taiwan.

• • [COMPUTEX 2024] The Rise of Generative AI Sparks Innovation across Industries, with Taiwan-based Companies Leading as Essential Partners in the Global Supply Chain

(Photo credit: Astera Labs)

Microsoft President Brad Smith announced the investment of USD 3.3 billion to construct an artificial intelligence data center in Wisconsin, aiming to make the state a core driver of the innovation economy. Notably, the site of the facility was originally intended for a LCD panel plant promised by Foxconn six years ago.

According to Microsoft’s press release, the AI data center in Wisconsin is expected to create 2,300 union construction opportunities by 2025 and will provide long-term employment opportunities over the next several years.

Microsoft’s press release highlights that this investment will be utilized for constructing cloud computing and artificial intelligence infrastructure, establishing the first AI co-innovation lab in the United States focused on the manufacturing industry, and promoting AI training programs with the goal of enabling over 100,000 Wisconsin residents to acquire necessary AI skills.

The press release also notes that Microsoft will collaborate with Gateway Technical College to establish a Data Center Academy, aiming to train more than 1,000 students within five years, equipping them to enter roles in data centers or information technology departments.

Microsoft’s new facility in Racine County, Wisconsin, was originally intended to be the site of a LCD panel plant planned by Foxconn, a subsidiary of Hon Hai Precision Industry Co., Ltd. (Foxconn Group), according to a report by CNA.

In June 2018, then-chairman of Foxconn, Terry Gou, and then-US President Donald Trump attended the groundbreaking ceremony for the panel plant. Foxocnn announced an investment of USD 10 billion, and Trump described the project as the “8th wonder of the world.”

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(Photo credit: iStock)