After iPhone and iMac, Apple could court Foxconn to build AI servers based on M-series CPU to boost the potential of Apple Intelligence
- Apple is reportedly seeking Foxconn support for AI servers in Taiwan
- Foxconn is already the leading manufacturer of Nvidia AI servers
- Foxconn’s limited capacity requires collaboration with other suppliers
Apple has reportedly approached long-term Foxconn about building artificial intelligence servers in Taiwan as part of its efforts to boost its AI computing capabilities.
A report from Nikkei Asia claims that Apple is reportedly keen to use its internal Apple M-series silicon chips for these servers, which will power Apple Intelligence features on the latest generation of devices including iPhones, iPads and MacBooks.
Although Foxconn has long been a supplier of Apple’s iPhones, sources familiar with the matter say Nikkei Asia that Foxconn’s ability to meet Apple’s request may be limited due to existing obligations. Foxconn is a primary manufacturer of Nvidia’s AI servers.
Engage other partners
“One of the reasons Apple wants Foxconn to make servers in Taiwan is in hopes of tapping into the engineering talent and R&D resources that work for Nvidia projects,” a source told the news site. Since Apple plans to produce these servers for its own needs, the volume required would be relatively low compared to the large-scale demand for Nvidia’s powerful GB200 AI servers.
Apple’s limited experience in server design, especially for data centers, means that Apple will likely need additional technical and design support from its suppliers. In light of this, the company is reportedly talking to other partners, including Lenovo’s subsidiary LCFC, to assist with certain server designs.
Nikkei Asia reports that these negotiations include exploring new manufacturing capabilities outside China, particularly in Southeast Asia, and working with smaller suppliers such as Universal Scientific Industrial for manufacturing services.
While companies like Microsoft, Amazon, and Google are ramping up their investments in AI data centers, Apple is catching up as it rolls out Apple Intelligence features to new devices. This push to increase AI capabilities underlines the company’s increasing need for extensive data center infrastructure.
Nikkei Asia notes that Foxconn and Universal Scientific Industrial declined to comment on the story, while Apple and Lenovo did not immediately respond to requests for comment.
