Nvidia's (NVDA) key supplier, Foxconn, said it is not worried about rising competition in artificial intelligence server production, Nikkei Asia reported Wednesday, citing Foxconn's rotating Chief Executive Michael Chiang.

Chiang added that Nvidia's new Vera Rubin platform will not make it easier for competitors to enter the market. Instead, large customers are likely to rely more on suppliers that can deliver at scale, the report said.

Foxconn invested more than $80 billion New Taiwan dollars ($2.48 billion) in H1, while full-year capital expenditures are expected to rise 30% from last year, the report added.

The company also said that for Q3, AI rack shipments are expected to continue growing, while overall operations should gain momentum as information and communications technology products enter their peak season. It added that it remains cautious about potential impacts from global political and economic uncertainty.

Foxconn didn't immediately reply to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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