After iPhone and iMac, Apple may be courting Foxconn to build AI servers based on its M-series CPU to accelerate Apple Intelligence potential -

Apple reportedly seeking Foxconn support for AI servers in Taiwan
Foxconn is already the primary manufacturer of Nvidia AI servers
Limited Foxconn capacity prompts partnerships with other suppliers

Apple has reporterdly 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 Apple is reportedly keen on using its in-house Apple M-series silicon chips for these servers, which will power Apple Intelligence features on its latest generation of devices, including iPhones, iPads, and MacBooks.

Although Foxconn has been a long-time supplier for Apple’s iPhones, sources familiar with the matter told Nikkei Asia that Foxconn’s capacity to accommodate Apple’s request may be limited due to existing commitments. Foxconn is a primary manufacturer of Nvidia’s AI servers.

Engaging other partners

“One of the reasons Apple wants Foxconn to make servers in Taiwan is in the hope to tap the engineering talent and R&D resources that work for the Nvidia projects,” a source told the news site. Because Apple intends 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, particularly for data centers, means it would likely require additional engineering and design support from its suppliers. In light of this, the firm 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 production capacities outside China, specifically in Southeast Asia, and collaborating with smaller suppliers like Universal Scientific Industrial for production services.

While companies like Microsoft, Amazon, and Google are ramping up investments in AI data centers, Apple is working to catch up as its Apple Intelligence features roll out to new devices. This push to boost its AI capabilities underscores the company’s increasing need for expanded 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.

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