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Nvidia And Foxconn Announce ‘AI Factory' For Supercomputer In Taiwan

Nvidia And Foxconn Announce ‘AI Factory' For Supercomputer In Taiwan

Forbes19-05-2025
Nvidia cofounder and CEO Jensen Huang delivering the opening keynote speech of Computex 2025 in Taipei, Taiwan.
I-HWA CHENG/AFP via Getty Images
Amid an intensifying global race for cutting-edge AI technologies, billionaire Jensen Huang's semiconductor design giant Nvidia and billionaire Terry Gou's contract electronics maker Hon Hai Technology Group (Foxconn) announced they will partner with the Taiwanese government to build an 'AI factory supercomputer.'
To develop the supercomputer, Nvidia will supply 10,000 Blackwell GPUs – the world's most advanced chips for generative AI, part of the company's next-generation GB300 systems – while Foxconn will provide AI infrastructure through its subsidiary, Big Innovation Company, as an Nvidia cloud partner. The resulting facility aims to 'significantly expand AI computing availability' for researchers and enterprises, including the Taiwan National Science and Technology Council and billionaire Morris Chang's Taiwan Semiconductor Manufacturing Co. (TSMC).
'AI has ignited a new industrial revolution — science and industry will be transformed,' said Huang, cofounder and CEO at Nvidia, in a statement. 'We are delighted to partner with Foxconn and Taiwan to help build Taiwan's AI infrastructure, and to support TSMC and other leading companies to advance innovation in the age of AI and robotics.'
Often billed as the future of computing, AI supercomputers are powered by finely tuned hardware consisting of hundreds of thousands of processors, or cores. Supported by specialized, high-speed networks and vast amounts of storage, these processors can work in parallel to perform calculations at speeds and scales far beyond those of everyday computers. One prominent example is Hewlett Packard Enterprise's (HPE) Frontier supercomputer, which can perform a quintillion (1,000,000,000,000,000,000) calculations per second – over a million times more than the number of stars in the Milky Way galaxy. While not explicitly designed for AI workloads, Frontier can help scientists complete complex AI-powered tasks, such as modeling the lifespans of nuclear reactors or simulating the interactions of subatomic particles in elements.
'By harnessing advanced AI infrastructure, we empower our researchers to accelerate breakthroughs in semiconductor technology, enabling next-generation solutions for our customers and the world,' said C.C. Wei, chairman and CEO of TSMC, in a statement. 'Leveraging this AI factory reinforces our commitment to pushing the limits of AI-driven innovation.'
The AI supercomputer collaboration comes as Foxconn, the largest supplier of Apple, has launched other initiatives with Nvidia while attempting to wean its reliance on Chinese manufacturing. Ahead of Taiwan's annual Computex electronics trade show and conference, it announced the debut of its 'Nvidia-accelerated' nursing robot, Nurabot, which aims to help hospital staff transport medication and samples in facilities across Taiwan. Last Thursday, Foxconn received approval from India's cabinet for a joint venture with billionaire Shiv Nadar's IT hardware giant HCL Group to build a 37 billion rupees ($435 million) semiconductor plant in the northern state of Uttar Pradesh. Announced in a cabinet briefing, the new plant is slated to be operational by 2027.
Taiwan, home to several key players in the semiconductor supply chain, has long supplied most of the world's semiconductors. Aside from TSMC, the world's largest semiconductor foundry, other leading companies include Tsai Ming-kai's Mediatek, which designs chips for both generative and edge AI, and billionaire Archie Hwang's Hermes-Epitek, which specializes in optoelectronic equipment used to make advanced microprocessors.
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Best equal-weight index funds

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Trump's unprecedented, potentially unconstitutional deal with Nvidia and AMD, explained: Alexander Hamilton would approve
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'A serious question with the chips tax,' Case Western's Jensen told Fortune, 'is who, if anyone, would have standing to challenge the tax?' In other words, it may be unconstitutional, but who's actually going to compel the federal government to obey the constitution? This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Nvidia and AMD's ‘special treatment' from Trump is shaking up an already tangled global chip supply chain
Nvidia and AMD's ‘special treatment' from Trump is shaking up an already tangled global chip supply chain

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Nvidia and AMD's ‘special treatment' from Trump is shaking up an already tangled global chip supply chain

Donald Trump's decision to let Nvidia and AMD export AI processors to China in exchange for a cut of their sales will have repercussions far beyond the semiconductor supply chain is global, involving a wide array of non-U.S. companies, often based in countries that are U.S. allies. Nvidia's chips may be designed and sold by a U.S. company, but they're manufactured by Taiwan's TSMC, using chipmaking tools from companies like ASML, which is based in the Netherlands, and Japan's Tokyo Election, and using components from suppliers like South Korea's SK Hynix. The U.S. leaned on these global companies for years to try to limit their engagement with China; these efforts picked up after the passage of the CHIPS Act and the expansion of U.S. chip-export controls in 2022. 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'If Nvidia and AMD are given special treatment because they've 'paid to play', why shouldn't other companies be doing the same?' he adds. Getting allies on their side The Biden administration spent a lot of diplomatic energy to get its allies to agree to limit their semiconductor exports to China. First, Washington said that manufacturers like TSMC and Intel that wanted to tap billions in subsidies could not expand advanced chip production in China. Then, the U.S. pushed for its allies to impose their own sanctions on exports to China. 'Export controls and other sanctions efforts are necessarily multilateral, yet are fraught with collective action problems,' says Jennifer Lind, an associate professor at Dartmouth College and international relations expert. 'Other countries are often deeply unenthusiastic about telling their firms—which are positioned to bring in a lot of revenue, which they use for future innovation—that they cannot export to Country X or Country Y.' This translates to 'refusing to participate in export controls or to devoting little or no effort to ensuring that their firms are adhering to the controls,' she says. Paul Triolo, a partner at the DGA-Albright Stonebridge Group, points out that 'Japanese and Dutch officials during the Biden administration resisted any serious alignment with U.S. controls,' and suggests that U.S allies 'will be glad to see a major stepping back from controls.' Ongoing trade negotiations between the U.S. and its trading partners could weaken export controls further. Chinese officials may demand a rollback of chip sanctions as part of a grand bargain between Washington and Beijing, similar to how the U.S. agreed to grant export licenses to Nvidia and AMD in exchange for China loosening its controls on rare earth magnets. Japan and South Korea may also bring up the chip controls as part of their own trade negotiations with Trump. 'Expect continuing diversions' A separate issue are controls over the transfer of Nvidia GPUs. The U.S. has leaned on governments like Singapore, Malaysia and the United Arab Emirates to prevent advanced Nvidia processors from making their way to China. Scrutiny picked up in the wake of DeepSeek's surprise AI release earlier this year, amid allegations that the Hangzhou-based startup had trained its powerful models on Nvidia processors that were subject to export controls. (The startup claims that it acquired its processors before export controls came into effect). As of now, the two chips allowed to be sold in China–Nvidia's H20 and AMD's MI308–are not the most powerful AI chips on the market. The leading-edge processors, like Nvidia's Blackwell chip, cannot be sold to China. That means chip smuggling will continue to be a concern for the U.S. government. Yet 'enforcement will be spotty,' Triolo says. 'The Commerce Department lacks resources to track GPUs globally, hence expect continuing diversions of limited amounts of GPUs to China via Thailand, Malaysia, and other jurisdictions.' Triolo is, instead, focused on another loophole in the export control regime: Chinese firms accessing AI chips based in overseas data centers. 'There is no sign that the Trump Commerce Department is gearing up to try and close this gaping loophole in U.S. efforts to limit Chinese access to advanced compute,' he says. How much will the global supply chain change? Not all analysts think we'll see a complete unraveling of the export control regime. 'The controls involve a complex multinational coalition that all parties will be hesitant to disrupt, given how uncertain the results will be,' says Chris Miller, author of Chip War: The Fight for the World's Most Critical Technology. He adds that many of these chipmakers and suppliers don't have the same political heft as Nvidia, the world's most valuable company. Yet while these companies may not be as politically savvy as Nvidia, they're just as important. TSMC, for example, is the only company that can manufacture the newest generation of advanced chips; ASML is the only supplier of the extreme ultraviolet lithography machines used to make the smallest semiconductors. 'I don't believe it's leverage that the Trump administration will easily give away,' says Ray Wang, a semiconductor researcher at the Futurum Group. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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