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Foxconn's High-Speed Interconnects Poised for Boom as Nvidia CPO Switches Target 2028 Mass Production

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Hon Hai Precision Industry (Foxconn) is poised to benefit from the growing demand for high-speed interconnects in AI data centers, particularly with the anticipated mass production of Co-Packaged Optics (CPO) switches by Nvidia in 2028-2029.
  • The company has seen a 1.4-fold year-on-year increase in shipments of data center switches above 800G this year, driven by the expansion of AI training clusters by major cloud service providers.
  • Industry analysts predict significant growth for CPO switch markets, with Nvidia's CPO switch shipments expected to surge, positioning Foxconn as a key beneficiary due to its early strategic investments in related products and manufacturing capabilities.

Hon Hai Precision Industry, also known as Foxconn, is strategically positioned to capitalize on the escalating demand for high-speed networking equipment in artificial intelligence data centers. The company is anticipating a significant surge in business as Nvidia's Co-Packaged Optics (CPO) switches are expected to enter mass production between 2028 and 2029. This development marks a new phase in the upgrade cycle for high-speed switches, crucial for the expanding AI infrastructure.

Foxconn has reported a substantial 1.4-fold year-on-year increase in shipments of data center switches operating at 800G and above this year. This growth is fueled by the continuous expansion of AI training clusters by major cloud service providers like Microsoft, Google, and Meta. The company's existing dominance, holding over a 70% market share in 800G and above data center switches globally, saw a remarkable 13-fold revenue increase in this segment last year, underscoring its critical role in AI infrastructure development.

Industry analysts highlight that global hyperscale cloud service providers are rapidly transitioning from 400G to 800G switches. Foxconn's subsidiary, Industrial Technology Research Institute (ITRI), is already integrated into Nvidia's Spectrum-X and Quantum-X platforms for CPO optical switches. ITRI is estimated to hold about a 90% market share in CPO switch manufacturing, with a shipment target exceeding 50,000 units this year. This includes Ethernet, InfiniBand, and NVLink switches, vital for AI high-speed interconnects.

Bank of America forecasts a 2.7-fold increase in Nvidia's CPO switch shipments next year, with a projected 2.65-fold growth by 2028, leading to mass production in 2028-2029. This outlook suggests that supply chain partners like Foxconn, which have proactively established technological and production capabilities, are set to be primary beneficiaries of the AI high-speed interconnect upgrade trend.

DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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