Apple is teaming up with Foxconn and LCFC, a Lenovo subsidiary, to create its own AI servers powered by Apple Silicon in Taiwan. This strategy is designed to enhance Apple's data center capabilities for their upcoming Apple Intelligence services and reduce their dependency on Chinese manufacturers.
The Reason for Choosing Taiwan
Sources suggest that Apple chose Taiwan primarily to benefit from Foxconn's extensive expertise in constructing AI servers. Foxconn is already producing servers equipped with Nvidia's H100 and H200 GPUs and is preparing to collaborate on new Blackwell-based chips.
Focus on AI Inference Management
Unlike its rivals such as Amazon, Google, and Microsoft, Apple's server strategy focuses more on managing AI inference instead of developing large language models. These servers are intended for internal operations, indicating that production volumes will be lower compared to typical data center configurations.
Collaboration and Design Support
This partnership goes beyond just server production; it also involves engineering and design assistance from Foxconn and LCFC. Although Apple may not have a lot of experience in designing data center servers, the development is expected to progress rapidly since these servers are less complex than Nvidia's GB200 systems.
Foxconn has AI research facilities in Hsinchu, Taiwan, and San Jose, California, where they are currently collaborating with Nvidia on upcoming GB300 server initiatives. Moreover, additional manufacturing partners like Universal Scientific Industrial may also join to further diversify the production process.
