Is Apple in talks with Foxconn to build AI servers in Taiwan?

Apple has approached Foxconn to construct AI servers in Taiwan as the company looks to boost its computing ability and secure a larger pie of the generative AI boom, according to a report by Nikkei Asia . Though Foxconn is Apple’s biggest iPhone supplier, it also makes Nvidia’s AI servers, and sources told Nikkei it may have limited capacity to take Apple as a new server client. Apple typically prefers to use its own chips for building servers to power generative AI features in devices like MacBooks.

Apple is looking at all options, including making its own AI servers and talking with Foxconn, the report says. Apple hopes to take advantage of Taiwan’s engineering talent and R&D resources. Since mastering AI computing and expanding data center infrastructure is critical to next-generation computing, Apple is enhancing its server capabilities in response to heavy investments in AI data centers by other tech giants like Microsoft, Amazon and Google, according to TrendForce , citing the Nikkei report.



Sources told Nikkei that manufacturing AI servers requires a complete overhaul of key components and production line systems. The integration of new components like cooling tech into hardware and software is also more complex than in traditional servers. Currently, only a select few manufacturers such as Foxconn, Quanta and Wistronin are capable of producing Nvidia’ AI servers.

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