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Apple Asks Foxconn for Plan to Build AI Servers in Taiwan: Wire
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Apple (AAPL.US) approached Foxconn for a plan to build AI servers in Taiwan to accelerate its computing power and garner a larger market share in the generative AI market, The Nikkei reported.

Foxconn is Apple's largest supplier of iPhones and also a major manufacturer of Nvidia (NVDA.US)’s AI servers. Yet, people with the knowledge of the matter said that Foxconn could provide Apple with limited server production capacity. Nevertheless, Apple's AI servers are majorly for its own use, and hence the scale of discussions with Foxconn will be relatively small.

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One of the reasons Apple wants Foxconn to produce servers in Taiwan is to be able to utilize the engineering talent and R&D resources for Nvidia projects. Since Apple does not have the same experience in designing data center servers as Nvidia, it may need more suppliers to provide engineering and design services.
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