Against the backdrop of numerous rumors about delays in deliveries of Nvidia computing accelerators of the Blackwell generation, the words of Foxconn representatives at the reporting event were intended to reassure interested market participants. This contract manufacturer has promised to begin shipping server systems based on GB200 accelerators in the next quarter.
Image source: NVIDIA
However, we are still talking about small batches, as the Nikkei Asian Review explains, citing comments from Foxconn representative James Wu: “We are on schedule developing and preparing to begin production of a new Nvidia AI server, which will begin to be shipped in small quantities.” quantities in the last quarter of 2024, and production volumes will be increased in the first quarter of next year.” As the company representative added, dynamic changes in the delivery schedule are the norm when the specifications and technologies of a new product are significantly updated. Regardless of possible changes in the delivery schedule, Foxconn will be the first supplier of the first batch of GB200-based servers, as summarized by James Wu.
Since these servers will ship in small quantities this year, they may not have a major impact on Foxconn’s revenue, but demand for solutions based on the H100 and H200 is predictable enough that the company will be able to achieve its revenue growth goals consistently. and year on year based on the results of the second half of the current year.
Already, AI servers account for 40% of Foxconn’s server business revenue, and the company itself controls the same share of the global AI server market. Soon, in terms of its turnover, this business will become another source of potential revenue measured in trillions of dollars.
Foxconn is the primary contract manufacturer of NVL72 server systems based on 72 GB200 accelerators. Such a cluster is capable of 30 times faster performance than a similar system based on H100. The company ended the last quarter with an increase in net profit by 6% to $1.1 billion, and the profit margin remained at the level of the same period last year (6.42%). For the current quarter, Foxconn expects server segment revenue to increase 15% year-over-year. The customer segment will maintain revenue at the level of the same quarter last year.