(MENAFN- KNN India)
New Delhi, Jun 29 (KNN)
In a bold move that underscores its commitment to innovation and market diversification, Taiwanese tech giant Foxconn is reportedly planning to manufacture artificial intelligence (AI) servers in India.
This strategic expansion, first reported by the ET, marks a significant shift for the company best known as Apple's primary Iphone assembler.
Foxconn Chairman Young Liu recently dubbed AI servers as the company's potential "next-trillion revenue product," highlighting the importance of this venture.
The move aligns with Foxconn's broader strategy to reduce its reliance on smartphone manufacturing and capitalise on the burgeoning AI market.
According to industry sources, Foxconn is likely to utilise its existing facilities in Tamil Nadu for this new production line. The company already builds AI servers for tech giants like Amazon, Google, Microsoft, and Nvidia, with expectations to increase its global market share from 30 per cent to 40 per cent this year.
This expansion dovetails with India's ambitious plans to establish itself as a global manufacturing hub. By setting up AI server production in India, Foxconn stands to benefit from government incentives designed to boost local manufacturing, while simultaneously strengthening its foothold in one of the world's fastest-growing tech markets.
The move comes amid a series of investments by Foxconn in India, including reported talks with Google to manufacture Pixel smartphones in Tamil Nadu.
However, the company has faced scrutiny over its hiring practices, with recent allegations of discrimination against married women at its Chennai plant prompting a government inquiry.
While Foxconn has yet to officially confirm these plans, industry experts view the production of AI servers in India as a logical next step for the company.
If realised, this venture could significantly enhance Foxconn's presence in India and further diversify its manufacturing capabilities in the country.
As the AI revolution continues to reshape the tech landscape, Foxconn's strategic pivot towards AI server production in India could prove to be a game-changer, both for the company and for India's aspirations in the global tech manufacturing arena.
(KNN Bureau)
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