(Bloomberg) — Hon Hai Precision Industry Co. plans to increase server capacity to meet stronger-than-expected demand for Nvidia Corp.’s chips. used to develop AI, reflecting its expectations that spending on artificial intelligence will remain high.
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President Young Liu told Bloomberg Television that demand for next-generation Blackwell chips is “crazy,” echoing similar remarks from Nvidia CEO Jensen Huang last week.
The Taiwanese company is currently building the largest server assembly plant in Mexico housing Nvidia’s most advanced Grace Blackwell chips. Hon Hai will have a planned capacity of 20,000 GB200 NVL 72 servers in 2025, according to Liu, revealing its scale for the first time.
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“There has been a lot of talk about how computing needs may soon be saturated. But it appears that demand continues to grow. So this is beyond our expectations,” Liu said.
However, Liu said there had been a “hiccup” in the production of the GB200 servers, once again confirming a delay in supply to Blackwell. Shipments are now expected to begin at the end of the fourth quarter rather than at the start of the October-December period, it said.
Still, Nvidia Chief Financial Officer Colette Kress said in August that the company plans to ship billions of dollars worth of Blackwell chips during its fiscal fourth quarter.
–With help from Lauren Faith Lau.
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