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

Apple wants to exploit Foxconn’s talent to propel its Apple Intelligence servers, even though the provider may already be at capacity.

Apple has stepped up its efforts for Apple Intelligence, its suite of user-centric artificial intelligence tools. The company therefore aims to manufacture specialized servers to increase its computing power.

Currently, the company is in talks with Foxconn, its largest iPhone supplier. The Taiwanese supplier already offers a similar service for Nvidia.

Apple hopes to build its servers using Apple Siliconwhich is already used on the user side of Apple Intelligence features on Mac and iPad. According to Nikkei Asia, Apple’s server volume would be relatively small compared to that of Nvidia.

Nvidia’s GB200 system is currently the most powerful AI computing vehicle in the world. It follows that Apple would like to use Foxconn’s resources to power its own.

However, Foxconn’s relationship with Nvidia could potentially be the reason it cannot commit to Apple.

According to anonymous sources from Nikkei Asia, Foxconn is currently concerned about building server centers for Nvidia. Additionally, Apple’s relatively recent entry into the market would likely require additional support in the early stages, which could strain the already limited resources available at Foxconn.

As a result, Apple has begun exploring other partnerships, including with China’s Lenovo Group and its subsidiary LCFC, as well as smaller suppliers such as Universal Scientific Industrial. Apparently, discussions between Apple and Lenovo involve building servers outside of China.

Apple has begun rolling out Apple Intelligence features to compatible devices, such as the iPhone 15 Pro line, the iPhone16 range, and its M-series iPads and Macs. For now, Apple Intelligence is limited to American English, but the company plans to soon expand its catalog of languages.