Nvidia and Foxconn are significantly expanding their partnership, collaborating with the Taiwanese government to construct a state-of-the-art AI factory supercomputer in Taiwan. This ambitious project will house 10,000 of Nvidia’s newest Blackwell GPUs. The initiative aims to dramatically enhance AI computing resources for the nation’s researchers, startups, and diverse industries.
This development positions Taiwan to become a formidable global AI hub, leveraging its established semiconductor manufacturing strength. The project promises to accelerate AI innovation and adoption across multiple sectors. Nvidia’s CEO, Jensen Huang, speaking at Computex, described AI as fundamental infrastructure, stating, “this infrastructure, just like the internet, just like electricity, needs factories.”
He further stressed the importance of “Having a world-class AI infrastructure here in Taiwan,” according to his Computex keynote. Foxconn Chairman and CEO Young Liu stated that his company is now “building computing infrastructure to scale the next generation of breakthroughs across Taiwan” and that this new AI factory will “empower industries.” Researchers from Taiwan Semiconductor Manufacturing Company (TSMC) are also set to leverage the system for their advanced research and development.
Foxconn’s subsidiary, Big Innovation Company, will provide the AI infrastructure, operating as an NVIDIA Cloud Partner. This entity also plans to participate in the NVIDIA DGX Cloud Lepton marketplace.
Powering Taiwan’s AI Ecosystem
The new AI factory will be a technological powerhouse, featuring Nvidia’s Blackwell Ultra systems, prominently including the NVIDIA GB300 NVL72 rack-scale solution. High-speed data processing, essential for complex AI tasks, will be facilitated by NVIDIA NVLink interconnections, NVIDIA Quantum InfiniBand, and NVIDIA Spectrum-X Ethernet networking. The Blackwell Ultra AI Factory platform itself was unveiled by Nvidia at GTC 2025.
The Taiwan National Science and Technology Council intends to utilize the supercomputer to offer AI cloud computing resources, thereby cultivating a dynamic domestic tech ecosystem. Minister Wu Cheng-Wen articulated a vision for an “AI-focused industrial ecosystem in southern Taiwan,” with the ultimate goal of creating a “smart AI island.”
TSMC’s CEO, Dr. C.C. Wei, highlighted the project’s importance for the semiconductor leader, explaining that harnessing such advanced AI infrastructure empowers their researchers to “accelerate breakthroughs in semiconductor technology.” Beyond large corporations, the system aims to support startups and developers through the NVIDIA Inception program and the NVIDIA Deep Learning Institute.
Foxconn itself plans to use the supercomputer to boost automation and efficiency in its core areas of smart cities, electric vehicles, and smart manufacturing, including using NVIDIA Omniverse for factory digital twins to simulate processes like its GB200 Grace Blackwell Superchip production. Young Liu, Chairman of Foxconn, elaborated that Foxconn is leveraging Nvidia’s Blackwell performance to build AI infrastructure that will revolutionize electronics manufacturing. He stated their collaboration with Nvidia will help “accelerate the integration of AI across our global operations and deliver smarter electronics for the world.”
Nvidia also announced new DGX Spark and DGX Station personal AI supercomputers, with Taiwanese manufacturers including Acer, ASUS, and Gigabyte involved in their development. This further broadens Nvidia’s engagement with Taiwan’s tech sector.
Global AI Infrastructure and Strategic Context
The Taiwanese initiative is a component of wider, substantial investments in AI infrastructure by both Nvidia and Foxconn. For instance, Foxconn revealed in October 2024 its intention to establish a large facility in Mexico for producing Nvidia’s GB200 superchips. At that time an ongoing supercomputer project in Taiwan involving Foxconn and Nvidia was first alluded, which appears to be to the more detailed AI factory now announced. The “AI factory” concept within the Nvidia-Foxconn partnership dates back to at least October 2023, initially targeting advancements in autonomous vehicles.
Nvidia recently committed to a $500 billion AI infrastructure development in Texas, a move that occurred amid evolving US policies regarding chip exports to China. Foxconn is also involved in managing operations for that Texas project. These significant investments reflect a global rush to secure the massive computational power required by AI. Jensen Huang has previously remarked on the strategic importance of building AI infrastructure, aiming to meet surging demand and enhance supply chain resilience.
The global drive for AI supremacy is further illustrated by initiatives such as the just announced “UAE Stargate” AI data center initiative. The project, backed by Nvidia, OpenAI, and others, will also deploy Nvidia’s Blackwell GB300 systems. Such international ventures are emerging as the U.S. re-evaluates its technology export regulations, potentially granting allied nations increased access to sophisticated AI chips. This evolving landscape, with a new focus on export rules, could present more opportunity for Taiwan.
Challenges, Diversification, and Future Outlook
While these expansions mark significant progress, constructing such complex ecosystems presents challenges, including the potential difficulty in sourcing sufficient specialized labor, a concern previously noted by tech leaders.
For Foxconn, these moves into AI hardware are integral to a broader strategy of diversifying beyond its traditional role in consumer electronics assembly. The company is actively expanding into high-growth areas like AI and electric vehicles, aiming to transition from a manufacturing service provider to a platform solutions company.
Foxconn has also been developing its own AI capabilities, such as its FoxBrain large language model. The new AI factory in Taiwan, leveraging Nvidia’s advanced technology and bolstered by governmental support, clearly demonstrates this strategic pivot and Taiwan’s determination to be a leader in the ongoing AI revolution.
The intense demand for Nvidia’s technology through partners like Foxconn has even reportedly influenced AI server plans of other tech giants like Apple.
Separately, Taiwan’s National Center for High-Performance Computing (NCHC) is also set to receive a new AI supercomputer built by ASUS, featuring various Nvidia systems, to support sovereign AI and scientific research, as detailed on an NVIDIA Blog. Chau-Lyan Chang, director general of NCHC, explained that the new supercomputer is set to achieve breakthroughs in sovereign AI, quantum computing, and advanced scientific computation. He added that it “is designed to empower Taiwan’s technological autonomy” and foster collaboration.
