Apple will use AI servers 'made in Vietnam'.

According to the Economic Daily News, Foxconn Industrial Internet (FII), a subsidiary of Foxconn, will exclusively supply Apple with servers manufactured in Vietnam for training and testing AI services.

Not only is Foxconn the world's largest electronics manufacturer and a renowned iPhone assembly partner, but it is also Apple's largest supplier of servers for data centers. Foxconn accounts for approximately 43% of the global server market.

According to the article, FII also provides servers for Amazon, OpenAI (developer of the ChatGPT chatbot), and Nvidia (the world's most valuable chip manufacturer).

Headquartered in Shenzhen, China, Foxconn Industrial Internet is a major global supplier of servers and storage systems. (Image: Handout)

This information suggests that Apple is increasingly diversifying its supply chain, shifting away from China. Additionally, it underscores the iPhone manufacturer's ambitions in AI.

According to Bloomberg, Apple is developing its own AI generative tool called Apple GPT. AI generative tools are algorithms used to create new content such as audio, images, text, and video . In last week's quarterly earnings call, CEO Tim Cook confirmed that the company has been researching various AI technologies for years, including AI generative technology.

He remarked, "We view AI and machine learning as fundamental, inseparable technologies in almost every product we create." He also hinted that AI has been used in product and operating system development at Apple.

Previously, during Foxconn's Q1 2023 earnings report, Chairman and CEO Liu Young Way expressed optimism about the demand for AI servers. He shared that the company's server revenue reached $43.6 billion in 2022. Simultaneously, Foxconn continues to expand its electronics manufacturing capabilities outside of China.

Recently, the company signed a letter of intent to invest over $600 million in India for a smartphone casing manufacturing plant (FII) and a semiconductor equipment project, according to a senior Karnataka state official.

In Vietnam, Foxconn manufactures iPads and AirPods at its $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 other business areas here. Foxconn's investment plans in Vietnam include projects related to electric vehicle components, according to Reuters.

(According to SCMP)

Foxconn invests $600 million in chip and phone projects in India. Foxconn, Apple's largest iPhone assembly partner, will invest more than $600 million in India as part of a project to manufacture phones and semiconductor equipment.

Source: https://vietnamnet.vn/apple-se-dung-may-chu-ai-made-in-vietnam-2175201.html