Taiwanese tech giant, Hon Hai Precision Industry Co., is ramping up production to meet surging demand for Nvidia’s cutting-edge AI chips. The company’s chairman, Young Liu, revealed that orders for the next-generation Blackwell processors have been overwhelming, echoing sentiments expressed by Nvidia’s CEO, Jensen Huang. To capitalize on this trend, Hon Hai is constructing the world’s largest server assembly plant in Mexico, dedicated to housing Nvidia’s advanced Grace Blackwell chips.
According to Liu, the facility is expected to have a production capacity of 20,000 GB200 NVL 72 servers by 2025, marking a significant expansion of Hon Hai’s server business. This move underscores the company’s confidence in the continued growth of artificial intelligence investments, contradicting earlier predictions of a slowdown in compute demand.
However, Liu acknowledged a temporary setback in the production of GB200 servers, citing a delay in Blackwell chip supply. Shipments are now expected to commence in the late fourth quarter, rather than the initially anticipated early October-December period. Despite this hiccup, Nvidia remains optimistic about its fiscal fourth-quarter performance, with CFO Colette Kress projecting several billion dollars’ worth of Blackwell chip sales during that period.
Leave a Reply