Foxconn’s Shenzhen-based subsidiary to ‘exclusively’ supply Apple with AI servers made in Vietnam: report

Foxconn Industrial Internet (FII), the Shenzhen-based subsidiary of Foxconn Technology Group, will “exclusively” supply Apple with made-in-Vietnam servers for training and testing artificial intelligence (AI) services, according to a report by Taiwan’s Economic Daily News, as the world’s most valuable company continues to diversify its manufacturing supply chain away from China.

Foxconn, the world’s largest electronics contract manufacturer and Apple’s primary assembler of iPhones, is also the US technology giant’s biggest supplier of servers used in its data centres, according to the report, which cited sources and published on Monday. It also said that Foxconn, formally known as Hon Hai Precision Industry, accounted for about 43 per cent of the global server market.

The reported deal with Apple would represent another high-profile order for Foxconn’s Shanghai-listed unit FII, which has seen its shares on a wild price swing amid speculation that an acceleration of AI investments would boost demand for its products including servers.

FII, according to the report, has also supplied its servers to cloud computing giant Amazon Web Services, ChatGPT creator OpenAI and Nvidia, the world’s most valuable chip maker.