(Bloomberg) – Hon Hai Precision Industry Co. (2317.TW, HNHPF) plans to increase server capacity to meet stronger than expected demand for Nvidia Corp. (NVDA) chips used to develop AI, reflecting expectations that spending on artificial intelligence will remain high.
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Chairman Young Liu told Bloomberg Television that demand for the next generation of Blackwell chips was “crazy,” echoing similar comments from Nvidia Chief Executive Officer Jensen Huang last week.
The Taiwanese company is now building the world’s largest assembly plant in Mexico for servers with Nvidia’s most advanced Grace Blackwell chips. Hon Hai will have a planned capacity of 20,000 GB200 NVL 72 servers by 2025, said Liu, disclosing its size for the first time.
“There was a lot of talk that the need for computing power could soon be saturated. But it seems that demand is still growing. So that exceeds our expectations,” Liu said.
However, Liu said there was a “hiccup” in the production of GB200 servers, confirming yet another delay in Blackwell’s delivery. Shipments are now expected to begin at the end of the fourth quarter instead of early in the October-December period, he said.
Still, Nvidia’s Chief Financial Officer Colette Kress said in August that the company expects to ship several billion dollars’ worth of Blackwell chips in the fiscal fourth quarter.
—With help from Lauren Faith Lau.
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