Foxconn Plans to Invest USD 900 Mn in AI Server Manufacturing Factory in Mexico

Technology Author: EqualOcean News Editor: Yiran Xing, Wanqi Xu Updated 5 hours ago (GMT+8)

The world's largest AI server assembly factory set to land in Mexico

AI server

Local time on March 3, Mexican Governor Pablo Lemus Navarro of Jalisco State announced that Foxconn plans to build an artificial intelligence (AI) server super factory near Guadalajara, which is expected to be completed within one year.

Foxconn, the world's largest electronics contract manufacturer and Apple's contract manufacturer and the largest iPhone assembly plant, also assembles servers used for AI processing, benefiting significantly from the boom in AI in recent years.

]Lemus stated that Foxconn's investment amounts to approximately USD 900 million (CNY 6,518 million), and upon completion, it will become the world's largest AI server assembly factory. The products will use NVIDIA's advanced GB200 AI chips. The project is divided into two phases: expanding the existing Foxconn factory located in El Salto and building a new factory nearby. Lemus indicated that the construction should be completed within one year and added that the factory is expected to commence production by the end of this year or early next year.

Due to surging demand, investments in industrial parks in Jalisco State have reached USD 300 million this year. Lemus mentioned that out of the more than 600,000 square meters of available industrial land, up to 60% has already been pre-rented.

To date, Foxconn's investment in Mexico has exceeded USD 500 million, establishing numerous manufacturing bases, mainly located in Chihuahua State.