Foxconn engineers assembling advanced AI racks used for NVIDIA GB200 systems.
What exactly is Foxconn AI racks?
Foxconn stands for Hon Hai Precision Industry Co., Ltd. That is a Taiwanese company that holds the world’s largest electronics manufacturing contract. It manufactures 70-80% of the iPhones you use. It also manufactures PlayStation, Xbox, Kindle, Nintendo Switch, and now the fastest-growing AI servers. Foxconn also manufactures components for eight of the world’s top 10 tech companies. This means that Foxconn holds the largest share of manufacturing for every new technology that emerges.
What is an AI Rack?
An AI rack is a large server cabinet equipped with hundreds of thousands of GPUs (graphics processing units). These GPUs train and run artificial intelligence. For example, NVIDIA’s new GB200 NVL72 rack – it contains 72 Blackwell GPUs, which costs $2.5 to $3 million per rack (approximately Rs 21-25 crores), and has a power consumption of 120-140 kilowatts. These racks require a very complex liquid cooling system, high-speed cabling, and perfect assembly. Currently, only 4-5 companies in the world can manufacture such racks, with Foxconn being number one.
How much production is currently taking place?
Chairman Young Liu has stated that Foxconn is currently manufacturing 1,000 AI racks per week, which translates to approximately 50,000 to 52,000 racks per year. This is a significant number in itself. One GB200 NVL72 rack contains 72 GPUs, and 1,000 racks = 72,000 GPUs per week. Consequently, Foxconn alone is fitting 72,000 of the most advanced AI chips into racks every week. This represents a significant portion of NVIDIA’s total supply. Furthermore, as for what will happen in 2026, the company has clearly stated that production capacity will be increased manyfold in 2026. The current 1,000 racks per week could increase to 3,000 to 5,000 racks per week by 2026. To achieve this, the company is building new plants in Mexico, the United States, India, Vietnam, and Taiwan.
What are Foxconn’s plans for India?
Foxconn also wants to manufacture AI servers in India, and new plants are being discussed in Tamil Nadu and Gujarat. If AI racks are manufactured in India, it will create thousands of high-skilled jobs. India could become a major hub for AI hardware, enabling customers like NVIDIA, Google, and Microsoft to source directly from India. Furthermore, significant AI server plants are being built in Texas and Wisconsin in the US, as American companies like Microsoft, Google, Meta, and Amazon want their data and servers manufactured in the US for security.
Why is this news so important for Foxconn AI racks?
This shows the speed of AI. All the major AI models currently emerging, such as ChatGPT, Gemini, Grok, and Llama, are trained and run on these AI racks. The more racks are manufactured, the faster new AI will emerge. NVIDIA’s dependence on NVIDIA, which has become the world’s most valuable company, does not manufacture anything itself. All the work is done by partners like Foxconn, and the faster Foxconn builds, the faster NVIDIA will grow. Furthermore, there are geopolitical implications: If tensions between Taiwan and China ever escalate, global AI development could stall. Therefore, Foxconn is now shifting production to countries like Mexico, the United States, and India. This is called the China +1 strategy.
How is AI affecting the human brain?
Now let’s discuss the most intriguing question: can AI read human minds? Will AI know what we’re thinking? Recent research is quite surprising. Brain-Computer Interface (BCI), which Elon Musk’s company, Neuralink, has already implanted a chip in the human brain. The patient is operating the computer just by thinking. Next, reading thoughts through fMRI. Scientists can now use fMRI machines to detect what you’re thinking about, whether you’re thinking about a dog, a house, or a car. The accuracy has reached 80-90%. Then there’s the work of Meta and OpenAI. Meta has created an AI that can tell what you’re hearing or seeing just by looking at brain scans, without speaking. What will happen in the future? In the next 10-15 years, we may be communicating with each other without speaking, just by thinking. Or AI may be recording our dreams.
Conclusion: The Future of Foxconn AI racks
Foxconn’s production of 1,000 racks per week shows that this is just the beginning in the world of AI. By 2026-2030, AI will grow at a rate we can’t even imagine. Every company will build its own AI cloud. Then, every person will have their own personal AI assistant, who will be more intelligent. Then, operating a computer directly from the brain will become commonplace. Jobs will change. Those who think creatively and innovatively will survive. Foxconn doesn’t just run a factory; it’s building the future, and India will play a major role in that future. However, AI cannot yet read your mind live. For that, you’ll need to either implant a chip in your head or scan it with a very expensive machine. Your mind can’t be read from a phone or computer right now.
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