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Author: Amber Lin

Today’s AI is like the electricity of the first industrial revolution, becoming the core driver of innovation and transformation across industries. Looking back at that time, companies like General Electric, Westinghouse, and Siemens introduced electricity, a revolutionary new technology, and integrated it into global infrastructure, opening up unprecedented opportunities for development. With the development of technology, our generation faces a new form of infrastructure—information. Initially, the concept of information as infrastructure was not well understood, but with the widespread adoption of the internet, it has become ubiquitous, serving as the core of our lives and work.

Now, based on the foundation of networks and information, a more advanced form of infrastructure has emerged: intelligent infrastructure. While this may sound abstract, over time, we have deeply felt AI’s impact on various industries. Looking back in ten years, we will realize that AI has become ubiquitous and indispensable. Just as electricity and the internet were the core of industrial infrastructure in the past, AI is set to become the driving force of global enterprises and will change the way we design, operate, and manage.

In a keynote at COMPUTEX 2025, NVIDIA founder Jensen Huang further emphasized the potential of "AI factories" and pointed out how AI technology will further automate, digitize, and optimize production processes. Jensen predicts that AI will become the core of future factories, pushing for the complete upgrade of production lines and realizing more efficient, flexible, and sustainable manufacturing methods. This transformation is not just a technical advance, but a major shift in the global manufacturing industry. The emergence of AI factories marks the application of intelligent infrastructure in manufacturing reaching new heights, and it will have a profound impact on industry landscapes, business models, and global supply chains.

What is an AI Factory?

To put it simply, an AI factory is a specialized computing infrastructure designed to process large amounts of data and generate intelligent solutions. Its function is similar to that of a supercomputer, transforming raw data into useful insights and intelligence. This process requires not only powerful computing power but also advanced algorithms and automation technologies to improve efficiency.

It is important to emphasize that AI factories are not "smart factories" within manufacturing; they are infrastructures specifically designed to provide the computational power required for AI. According to NVIDIA, an AI factory is a computational infrastructure equipped with the latest GPU chips and software, specifically used to refine large datasets into AI models.

How Does an AI Factory Work?

An AI factory is a specialized computing infrastructure designed to handle large-scale data and support efficient AI inference. Its operations are based on data pipelines that collect, clean, and transform raw data into refined data, with a process that is highly automated to minimize human intervention and increase efficiency. The core function of an AI factory is to train and fine-tune AI models, using advanced algorithms and robust hardware to convert data into valuable insights and provide real-time decision support.

The architecture of an AI factory typically relies on high-performance hardware, such as GPUs, and specialized software platforms to support a wide range of AI applications, including autonomous driving, healthcare, and manufacturing. These factories are not only used for data processing but also accelerate the development and deployment of AI models, driving the digital transformation of industries.

What Are the Industry Use Cases for AI Factories?

The versatility of AI factories means they can be leveraged across nearly any industry for AI-driven innovation and efficiency. Some standout examples include AI initiatives in the automotive, healthcare, and technology industries.

Smart Mobility and Manufacturing Transformation: AI Factories Drive Autonomous Vehicles and Industrial Automation

In the automotive and manufacturing sectors, AI factories are powering unprecedented levels of intelligent transformation. By analyzing real-time sensor data from vehicles and production lines, AI factories enable autonomous systems to adapt driving behavior based on traffic conditions, greatly enhancing safety and decision-making speed. In manufacturing, AI factories dynamically optimize production workflows by predicting equipment maintenance needs and adjusting process parameters through machine learning models, thereby reducing production cycles and costs while enabling flexible, reliable smart manufacturing environments.

A New Era of Precision Healthcare: AI Factories Accelerate Drug Discovery and Personalized Treatment

In the healthcare industry, AI factories are widely used to process massive datasets from clinical trials, genetic sequencing, and electronic health records. With high-performance computing and generative AI, they can rapidly analyze patient data to support the development of novel drug molecules, significantly shortening the drug discovery timeline. Furthermore, AI factories enable personalized treatment plans by analyzing individual patient profiles and risk factors, improving medical outcomes while reducing unnecessary costs—ushering in a new standard of efficient, high-quality healthcare.

Delta Electronics Adopts AI Factory for Smart, Digitally Integrated Manufacturing

Delta Electronics has implemented AI factory technologies by leveraging NVIDIA Omniverse™ and OpenUSD to integrate 3D data from its production equipment into a digital twin, creating a synchronized virtual model of its manufacturing lines. Using NVIDIA Isaac Sim™, Delta generates highly realistic synthetic data to train computer vision models and simulate camera performance, enabling optimization of processes and quality control before actual production begins.

This approach allows Delta to validate and adjust workflows in advance, significantly improving efficiency, reducing errors and waste, and advancing toward sustainable manufacturing. It stands as a leading example of how AI factories are transforming the manufacturing sector.

The Future of Taiwan’s AI Factory

In his keynote, Jenson Huang emphasized that Taiwan will collaborate with NVIDIA, TSMC, Foxconn, and the National Science and Technology Council to build Taiwan’s first large-scale AI supercomputer. This AI factory will be the cornerstone of Taiwan’s AI industry transformation, driving the development of the global AI ecosystem and elevating Taiwan’s leadership in the global AI economy.

An AI factory is not just about boosting computational power; it is the key infrastructure that supports innovation across various fields. With this supercomputing center, Taiwan will have strong computational capabilities and will accelerate AI applications in semiconductor manufacturing, smart cities, electric vehicles, and more.

Conclusion

In conclusion, AI factories are quickly emerging as the foundational infrastructure for every sector and technological breakthrough. By optimizing the AI life cycle and dramatically boosting performance, AI factories give enterprises and cities cost-efficient, high-performance advantages. For Taiwan, harnessing its domestic semiconductor strengths, advancing AI algorithm R&D, and expanding system-integration capacity will further elevate the nation’s global competitiveness. As AI technologies accelerate, Taiwan is proactively building ecosystem partnerships and deepening international collaboration, positioning itself to witness AI factories redefine the global industrial landscape.

Disclaimer

The companies, technologies, or products mentioned in this article are for illustrative purposes only and do not represent any commercial endorsement or preference. All information, views, and interpretations expressed do not reflect the position of any organization or company.

• The AI Factory: What It Is & Its Key Components | HBS Online
• What is an AI Factory? | NVIDIA Glossary
• Delta Electronics Is Redefining Production Lines and Industrial Inspection With Digital Twins and Synthetic Data
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