Apple is in discussions with Foxconn to manufacture AI servers in Taiwan, aiming to bolster its Apple Intelligence initiative. Apple Intelligence, a suite of user-focused AI tools, relies heavily on substantial computing power. To meet these growing demands, Apple seeks to produce specialized servers powered by its Apple Silicon. These servers would enhance processing capabilities, supporting AI-driven features across all Apple devices.
Nvidia Partnership May Limit Foxconn’s Capacity
However, Foxconn, Apple’s largest iPhone supplier, currently produces AI servers for Nvidia, whose GB200 system is recognized as one of the world’s most powerful AI computing platforms. Due to the high demands from Nvidia, Foxconn’s resources are already stretched, which could limit its ability to meet Apple’s needs. Anonymous sources indicate that Foxconn may prioritize Nvidia, as Apple’s AI server requirements are relatively smaller in volume.
Apple Considers Other Partners for AI Expansion
Therefore, given Foxconn’s limited availability, Apple is exploring additional partnerships. The company has reportedly reached out to Lenovo Group and its subsidiary LCFC, as well as Universal Scientific Industrial. In fact, Apple’s discussions with Lenovo could lead to server production outside China, aligning with Apple’s goal to diversify its global supply chain.
Apple’s push for AI servers underlines its ambition to enhance its AI capabilities. This expansion reflects Apple’s commitment to delivering advanced AI experiences across its products, even as it navigates supply challenges in the competitive tech landscape.
