Foxconn Leads in GB300 AI Server Development for NVIDIA

NVIDIA is expected to reveal its next-generation GB300 AI server products at the GTC conference in March 2025. In preparation, Foxconn and Quanta have already entered the R&D phase, positioning themselves to capitalize on this opportunity. Sources indicate that NVIDIA has finalized initial configurations for GB300 orders, with Foxconn continuing to be the largest supplier. The first units are projected to hit the market in the first half of 2025, ahead of global competitors.

The Taiwan-based GB300 supply chain, however, has remained tight-lipped about new customer developments. Industry experts note that, similar to Apple's annual iPhone releases, NVIDIA CEO Jensen Huang has previously stated that the company will follow a “yearly product generation” approach for AI products. As such, major partners must work proactively, especially toward the year-end, to align with NVIDIA's product development timeline.

Foxconn remains one of NVIDIA's most critical partners as the company enters the GB300 era, securing the largest share of orders. Foxconn's highly integrated resources within its vertical supply chain position it as a key player in the assembly of NVIDIA’s GB300 AI servers.

In addition to its established presence in the GB200 series with modules, assembly, and more, Foxconn has expanded into areas like liquid cooling systems and connectors. Industry rumors suggest that NVIDIA may eliminate traditional fans in the GB300 series, opting for a fully liquid-cooled solution. With NVIDIA potentially allowing assembly partners to take the lead in component procurement, Foxconn is set to maintain its strong position in delivering next-gen AI servers.

Foxconn's vertical integration, combined with significant early-stage investment in AI server development, has been central to its successful partnership with NVIDIA. The companies have been collaborating since 2017, working together from the first-generation AI server to the current GB200 and upcoming GB300 models.

Foxconn's Chairman, Liu Yangwei, believes that the company's vertical integration is one of the key factors that strengthens its partnership with clients. For example, with the GB200 series, Foxconn supplied approximately 80%-90% of the components, excluding the GPU and CPU.

Quanta and Inventec are also important partners in the GB300 ecosystem. While Foxconn leads with the largest order share, Quanta follows as the second-largest supplier, and Inventec has significantly increased its order volume compared to the GB200 series. These companies are poised to discuss the exciting opportunities presented by the next-generation GB300.

As NVIDIA continues to push forward with its next-generation product releases each year, market interest remains high, particularly concerning production progress. Earlier reports of overheating issues from the supplier AOSL raised concerns about potential delays in GB300 mass production. However, experts stress that challenges are common during new product development, from chipset yield rates to assembly testing. Similar issues have occurred prior to previous iPhone launches, but they are typically resolved, allowing products to meet scheduled announcements.