Foxconn Could Be Tapped To Produce Apple Intelligence Servers In Taiwan; Will Be Intended For Internal Use To Push The Company’s Generative AI Capabilities

The release of iOS 18.1 signifies that Apple Intelligence is ready for primetime, but there is a tremendous amount of work remaining, such as expanding upon generative AI features, which can only be completed with additional server capacity. To fulfill this expansion, Foxconn is said to be in talks with the technology giant regarding building the necessary hardware for this goal, but there is a possibility that more players may enter Apple’s supply chain for this very purpose.

Apple is also reportedly engaged with Lenovo and its subsidiary to assist in designing some of the servers

The latest report from Nikkei Asia mentions that Apple and Foxconn have entered into discussions, with the world’s largest iPhone assembling firm possibly being tasked the responsibility to mass produce servers that will allow millions of people to access cloud-based Apple Intelligence features. No agreement has been signed yet, so nothing is set in stone right now, primarily because Foxconn might have its hands full with building NVIDIA’s AI servers, meaning that Apple’s allocated capacity might be limited.

The Cupertino firm may have anticipated this hurdle, which is why Apple is also said to be in talks with China’s Lenovo Group and its subsidiary, LCFC, to help in the designing of these servers. It is also possible that other players, like Universal Scientific Industrial, will enter the supply chain for additional production capacity. The exact number of Apple Intelligence servers required for the upcoming batch was not mentioned, but the report does state…