Today we have learned that Apple plans to use its own Apple Silicon processors for its AI servers, which will be used, among other things, to power its Apple Intelligence services, reports the media outlet Nikkei.
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Subscribe (it's FREE) ►The company has contacted Foxconn and Lenovo to build the machines and has specifically asked them to manufacture the servers in Taiwan.
While one of Apple’s reasons for assembling these machines in Taiwan is to reduce its dependence on China, another is to take advantage of the talent and R&D resources that Foxconn takes advantage of for its Nvidia-based AI servers.
Apple wants to have a huge data center in Taiwan to fuel its AI
Apple is considering the production of AI servers in Taiwan, at Foxconn facilities, to enhance its computing capabilities for new generative AI features in its devices.
However, Foxconn, Apple’s main manufacturing partner, is also the world’s largest manufacturer of AI servers, and primarily manufactures machines based on Nvidia’s GPUs, such as the H100 and H200.
For now, Foxconn’s capacity in Taiwan is quite limited, as the company is preparing to start mass production of machines based on GB200 with Blackwell architecture. Apparently, this is one of the reasons why Apple wants to produce its AI machines in Taiwan: to leverage the expertise Foxconn has gained working on Nvidia projects.
Apple’s AI approach differs from that of cloud service providers like Microsoft and Amazon, as it focuses more on AI inference than on training large-scale language models.
Therefore, Apple will not need servers with sophisticated technologies like liquid cooling. Additionally, since Apple’s AI servers are intended for internal use, the production scale will be relatively small compared to Nvidia’s GB200 AI machines.
That also poses a problem, as companies like Foxconn and Lenovo prefer clients with large orders. Even so, as Apple rolls out its Apple Intelligence service to more users, it will need more AI servers, making it a lucrative client.
The development of AI server infrastructure is crucial for Apple’s next-generation products, as the company tries to keep up with competitors like Amazon, Google, and Microsoft, all of which are significantly expanding their investments in AI servers.
Due to Foxconn’s limited capacity in Taiwan, Apple is also in talks with Lenovo and its subsidiary LCFC to assist with server designs.
To diversify and mitigate dependence on Chinese suppliers, Apple and Lenovo are exploring new production capabilities outside of China. The possibility of smaller suppliers, such as Universal Scientific Industrial, supporting production is also being considered.
