Foxconn, in partnership with Nvidia, is expanding its reach into smart cities, factories, and electric vehicles (EVs). Foxconn has developed its own AI foundational model, 'FoxBrain,' to assist customers across various industries. Mitsubishi will be among the first automobile OEM customers to leverage FoxBrain.

FoxBrain is built on open-source models like Meta Llama-3 and -4 and is hosted at Foxconn’s Kaohsiung data center, utilizing Nvidia H100, GB200, and GB300 AI chips. This first-generation model specializes in reasoning with agentic workflows for specific applications. According to Foxconn Chairman Young Liu, customers can use Foxconn's AI reference models to reduce their workload by approximately 80%, allowing them to invest more in developing new EVs. Foxtron, Foxconn's EV unit, has agreed to develop and supply an EV model to Mitsubishi Motors, slated for introduction in the Oceania region in the second half of 2026.

The increasing importance of generative AI (GenAI) is evident across industries, including the automotive sector, for efficiency gains and cost savings. Foxconn is also expanding into EVs, semiconductors, and servers. The company is constructing a 100MW data center in Taiwan, equipped with Nvidia software and hardware, to support the growing demand for AI applications. The data center will be built in phases, starting with a 20MW capacity. Foxconn aims to become a leader in AI manufacturing by creating comprehensive ecosystems with Nvidia and other partners.

Nvidia CEO Jensen Huang emphasized Taiwan's pivotal role in the global technology ecosystem, stating that Nvidia is helping Taiwan build AI. Foxconn utilizes Nvidia Metropolis for smart cities and factories, Nvidia Isaac for robotics, Nvidia Drive for autonomous vehicles, and Nvidia Omniverse as the digital twin operating system. Huang announced the construction of an AI factory for use by Foxconn, Nvidia, Taiwan, and the broader ecosystem, positioning Foxconn as a world-class regional AI cloud provider.

Foxconn and Nvidia are collaborating with the Taiwan government to establish an AI factory supercomputer, leveraging Nvidia Blackwell infrastructure for researchers, startups, and industries, including TSMC. Nvidia is also expanding its presence in Taipei with a new office, Constellation, signaling its diversification strategy. The company has committed $500 billion over the next four years for US AI infrastructure projects and has partnerships with TSMC, Foxconn, and Wistron.

Amidst the AI boom, Nvidia briefly surpassed Microsoft as the world's most valuable publicly traded company in June 2024, with a market capitalization of nearly $3.3 trillion. However, it has faced recent pressures due to geopolitical tensions and tariff wars. Foxconn, primarily known for assembling iPhones for Apple in China, is also building a large manufacturing facility in Mexico to produce AI servers for Nvidia.