Nvidia CEO Jensen Huang and Foxconn Chairman Young Liu jointly announced in Taipei their collaboration to establish "AI factories, " which are data centres powered by Nvidia chips that support various applications. However, recent export restrictions imposed by the US government will prevent the sale of Nvidia's high-end AI chips (A800 and H800) in China. During Foxconn's annual tech showcase in Taipei, Mr Huang explained that AI factories produce a new type of manufacturing intelligence, and Foxconn's expertise and global reach make them capable of building these facilities worldwide. Mr Liu also highlighted Foxconn's ambition to evolve from a manufacturing service company to a platform solution company, citing smart cities and smart manufacturing as potential applications for AI factories.

Nvidia's market value has surpassed $1 trillion due to the extensive use of their advanced chips in AI applications, making it the fifth US company to join the "Trillion dollar club, " along with Apple, Microsoft, Alphabet, and Amazon. Foxconn, primarily known for producing Apple products, is diversifying its business and focusing on electric vehicles (EVs) as the driver for future growth. In partnership with Nvidia, Foxconn aims to develop autonomous vehicle platforms by manufacturing electronic control units based on Nvidia's chips.