Taiwanese technology company Hon Hai, known globally as Foxconn, has announced a US $168 million investment in Mexico as it expands production of its servers for artificial intelligence.
According to the Taiwanese newspaper United Daily News, Foxconn’s investment in the country aims to meet demand by increasing Foxconn Industrial Internet’s (FII) production capacity at its plant in Jalisco state, where it has already begun manufacturing artificial intelligence (AI) servers.
“Demand is incredibly high,” Ting said at the company’s annual tech day in Taipei, alongside Nvidia’s vice president of AI and robotics, Deepu Talla.
The AI server sector accounts for 32% of Foxconn’s sales.
Foxconn’s investment in Mexico is not an isolated move. It follows a similar investment made in August 2024, when the Taiwanese firm funneled US $241.2 million into its Mexican subsidiary, and in February of this year, when the company acquired a 421,600-square-meter property in Jalisco.
With this financial boost, Mexico could position itself as a key player in advanced technology manufacturing at a time when U.S. technology companies are seeking safer alternatives closer to their primary markets.
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“The growing presence of Taiwanese companies in Mexico is part of a process that will change the country’s industrial structure over the next 10 years,” Francisco Cervantes, president of the Business Coordinating Council, said.
Like other technology companies, Foxconn has benefited in recent months from optimism about the future of AI, becoming one of the leading manufacturers of Nvidia’s GB200 servers. The company’s spending comes amid a significant influx of funding from multinational companies in data centers, semiconductor facilities and power supply.
According to estimates from the Swiss financial services firm UBS, companies will invest US $375 billion globally in 2025 on AI infrastructure.
Founded in 1974, the Foxconn Group is the world’s largest contract electronics manufacturer. It has made the manufacturing of servers for AI one of its top priorities and expects sales of these devices to exceed 1 trillion Taiwan dollars (approximately US $32.77 billion) this year, which would represent 50% of its total server business.
With reports from EFE, The New York Times and Arena Republica
