Taiwanese iPhone assembler Foxconn and U.S. chip developer Nvidia are enhancing their collaboration in artificial intelligence, the two companies revealed on Wednesday.

Foxconn Chairman and CEO Young Liu and Nvidia CEO Jensen Huang appeared together at Foxconn's annual technology day event in Taipei to discuss the collaboration and show off the Taiwanese company's latest electric vehicle.

"A new type of manufacturing has emerged: the production of intelligence. And the data centers that produce them are AI factories," Huang said in a speech. "Foxconn, the world's largest manufacturer, has the expertise and scale to build AI factories globally. We are delighted to expand our decade-long partnership with Foxconn to accelerate the AI industrial revolution."

The announcement builds on an established relationship between the two companies. Foxconn has a history of building AI data centers using Nvidia chips.

This is Huang's second visit to Taiwan this year. His company has been a major force behind the current AI boom. Its chips power the technology behind ChatGPT, the wildly popular chatbot developed by OpenAI of the U.S., as well as other AI applications.

Advanced data centers need an array of technology to be able to carry out their computing tasks, Huang said at the event, including graphics processing units, central processing units and networking switches.

Foxconn will use Nvidia's technology to develop new types of data centers for a range of applications, including smart manufacturing, generative AI and EV platforms, according to the companies.

The focus is "to advance incredible data centers so that we could scale it out for every industry and every single company, so we have a giant semiconductor design team that are basically designing chips that fit into this entire data center," Huang said.

"We'll be selling solutions for the software platform created partly by Nvidia and partly by us," Liu said at a press conference after the event.

"In the past, we already collaborated with Nvidia by providing manufacturing service to Nvidia ... but with new collaborations we will collaborate on a platform solution which includes software and hardware as a total platform solution for specific applications such as smart manufacturing."

Foxconn also showcased its latest EV model on Wednesday as it seeks to become a major player in the automotive industry.

"Foxconn is turning from a manufacturing service company into a platform solution company," Liu said in a prerecorded speech for executives and journalists. "I am so excited to show off our latest EV model. This is the Model B."

Liu said the company expects the Model B, an SUV with a driving range of 450 kilometers, "to enter into mass production" in the future, but did not say when.

The chairman also touched on Foxconn's ambitions in "smart" cities and manufacturing as it approaches its 50th anniversary. Its first self-developed low-Earth orbit (LEO) satellite is also ready to launch next month, he added.

One thing Huang did not discuss during the event was the latest developments out of the U.S. Washington announced on Tuesday that it will curb the sale of more advanced AI chips to China, a move that will restrict the export of Nvidia's A800 and H800 chips.

Shares of Nvidia and other semiconductor stocks dropped following the announcement.

Nvidia in a stock exchange filing acknowledged that the curbs will likely affect not only its sales to China but also countries such as Saudi Arabia, the United Arab Emirates and Vietnam. The U.S. extended the curbs to prevent resales to China.