Foxconn invests US $168M to expand AI server production at Jalisco plant

Taiwanese exertion institution Hon Hai, known globally arsenic Foxconn, has announced a US $168 cardinal concern successful Mexico arsenic it expands accumulation of its servers for artificial intelligence.

According to the Taiwanese paper United Daily News, Foxconn’s concern successful the state aims to conscionable request by expanding Foxconn Industrial Internet’s (FII) accumulation capableness astatine its works successful Jalisco state, wherever it has already begun manufacturing artificial quality (AI) servers.

“Demand is incredibly high,” Ting said astatine the company’s yearly tech time successful Taipei, alongside Nvidia’s vice president of AI and robotics, Deepu Talla.

The AI​​ server assemblage accounts for 32% of Foxconn’s sales.

Foxconn’s concern successful Mexico is not an isolated move. It follows a akin concern made successful August 2024, erstwhile the Taiwanese steadfast funneled US $241.2 cardinal into its Mexican subsidiary, and successful February of this year, erstwhile the institution acquired a 421,600-square-meter spot successful Jalisco.

With this fiscal boost, Mexico could presumption itself arsenic a cardinal subordinate successful precocious exertion manufacturing astatine a clip erstwhile U.S. exertion companies are seeking safer alternatives person to their superior markets.

Foxconn to put US $241M successful AI server manufacturing successful Chihuahua

“The increasing beingness of Taiwanese companies successful Mexico is portion of a process that volition alteration the country’s concern operation implicit the adjacent 10 years,” Francisco Cervantes, president of the Business Coordinating Council, said.  

Like different exertion companies, Foxconn has benefited successful caller months from optimism astir the aboriginal of AI, becoming 1 of the starring manufacturers of Nvidia’s GB200 servers. The company’s spending comes amid a important influx of backing from multinational companies successful information centers, semiconductor facilities and powerfulness supply.

According to estimates from the Swiss fiscal services steadfast UBS, companies volition put US $375 cardinal globally successful 2025 connected AI infrastructure.

Founded successful 1974, the Foxconn Group is the world’s largest declaration electronics manufacturer. It has made the manufacturing of servers for AI 1 of its apical priorities and expects income of these devices to transcend 1 trillion Taiwan dollars (approximately US $32.77 billion) this year, which would correspond 50% of its full server business.

With reports from EFE, The New York Times and Arena Republica