Foxconn, the renowned iPhone manufacturer, is expecting a significant surge in growth owing to the rising demand for artificial intelligence (AI) servers in 2024. This projection comes as Apple prepares to introduce AI features with the upcoming iOS 18 and the highly anticipated iPhone 16 later in the year, potentially indicating a transformative shift in the tech industry.
According to Foxconn Chairman Young Liu, revenue generated from AI servers is predicted to experience a remarkable 40% YoY growth, while revenue from graphic processing unit (GPU) modules is anticipated to achieve a triple-digit percentage increase. As a result, AI server-related revenue is expected to account for 40% of Foxconn’s entire server business by 2024, a notable rise from the 30% witnessed in 2023.
Apple’s strategic plans related to AI have already garnered attention from industry analysts, reinforcing Foxconn’s positive outlook. Haitong Securities analyst Jeff Pu and TrendForce have previously revealed that Apple embarked on the production of AI servers in 2023, and further expansions are anticipated this year to support the company’s strong commitment to AI. These initiatives align with Apple’s ambition to foster a significant AI-driven revolution.
In addition to hardware advancements, Apple has also demonstrated its dedication to enhancing AI capabilities through substantial investments. Reports from The Information highlight Apple’s multi-million-dollar daily investment in training its large-language models (LLMs). Although primarily focused on improving the AppleCare customer experience, Apple’s Siri team intends to leverage these language models to simplify complex shortcut integrations, expanding accessibility to a wider user base.
The fusion of AI and Apple’s cutting-edge technology is poised to bring about groundbreaking advancements while catering to the evolving needs of users worldwide. Foxconn’s optimistic forecast and Apple’s strategic moves in the AI domain hint at an exciting future marked by innovation and transformative AI-powered experiences.
FAQ
1. What is Foxconn expecting in terms of growth?
– Foxconn is expecting a significant surge in growth due to the rising demand for artificial intelligence (AI) servers in 2024.
2. What is the projected growth for AI server revenue?
– Revenue generated from AI servers is predicted to experience a remarkable 40% YoY growth.
3. What is the anticipated increase in revenue from GPU modules?
– Revenue from graphic processing unit (GPU) modules is anticipated to achieve a triple-digit percentage increase.
4. How much is AI server-related revenue expected to account for in Foxconn’s entire server business by 2024?
– AI server-related revenue is expected to account for 40% of Foxconn’s entire server business by 2024, up from the 30% witnessed in 2023.
5. What are Apple’s strategic plans related to AI?
– Apple has embarked on the production of AI servers and is expected to make further expansions this year to support its commitment to AI. Apple aims to foster a significant AI-driven revolution.
6. How is Apple investing in enhancing AI capabilities?
– Apple is making substantial investments in training its large-language models (LLMs) on a daily basis. These language models will be used to improve the AppleCare customer experience and simplify complex shortcut integrations for a wider user base.
7. What does the fusion of AI and Apple’s technology aim to achieve?
– The fusion of AI and Apple’s cutting-edge technology aims to bring groundbreaking advancements and cater to the evolving needs of users worldwide.
Key Terms:
– Artificial Intelligence (AI): The simulation of human intelligence in machines that are programmed to think and learn like humans.
– AI servers: Servers specifically designed to handle the processing and computation required for artificial intelligence tasks.
– Graphic Processing Unit (GPU): A specialized electronic circuit designed to rapidly process and render images, videos, and animations.
– YoY Growth: Year-over-year growth, which measures the percentage change in a company’s financial performance from one year to the next.
Related Links:
– Apple website
– Foxconn website