The mega factory will be built in the state of Jalisco (west), with coasts over the Pacific and known worldwide for tequila production.
Taiwanese tech giant Foxconn will build the world’s largest plant for the manufacture of “superchips” GB200 by the U.S. group Nvidia, designed for artificial intelligence servers (IA).
Foxconn, whose official name is Hon Hai Precision Industry, is the world’s largest contract electronics manufacturer and has major tech companies, including Apple, among its customers.
The mega factory will be built in the state of Jalisco (west), with coasts over the Pacific and world known for the production of tequila, confirmed Wednesday the regional governor, Enrique Alfaro, at a press conference in the city of Guadalajara.
“It is news of the greatest relevance for Jalisco and the country,” the governor said.
It represents “the possibility of Jalisco being consolidated as the main ‘hub’ (center) of innovation in Latin America,” said Alfaro.
Construction of the complex was announced Tuesday by Benjamin Ting, Foxconn’s vice president for cloud business solutions. It will assemble “superchips” GB200 from the Nvidia group.
“We are building the largest GB200 production plant on the planet,” Ting said on the “Hon Hai Technology Day,” which the company celebrates annually.
The president of the firm, Young Liu, later told journalists that the new plant will be built in Mexico, without detailing the amount of the investment.
“A before and a later”
Foxconn has also expanded into other areas such as electric vehicles, semiconductors and servers.
The governor of Jalisco commented that the investment of the Taiwanese group took place after two years of talks and will mark “a before and after in the manufacturing industry” of Mexico, the 12th world economy.
“Mexico enters the era of top super chips,” said the Secretary (minister) of Economy, Marcelo Ebrard, in X.
The governor explained that a confidentiality agreement prevents him for now revealing the exact location where the factory will operate, but insisted that “the decision is made.”
In fact, the acquisition of the land was already underway before the announcement, said the president, whose state suffers the onslaught of the violent drug cartels.
Nvidia does not manufacture its own chips, unlike its rivals Intel, Micron and Texas Instruments, but uses subcontractors.
Foxconn announced last year a partnership with Nvidia to create “IA factories,” data-processing centers that would drive the manufacture of next-generation products.
Relief in front of Tesla
The realization of the megaplant is a relief for Mexico, following Tesla’s decision to postpone the construction of an electric car factory in the city of Monterrey (north) pending the presidential elections in the United States.
The company of tycoon Elon Musk planned to invest about $5 billion in this project, which is set in expectations of a relocation of companies on the Mexican side of the border with the United States, the world’s first economy.
Mexico is also part of a U.S. initiative to develop semiconductors, at a time when it is waging a battle with China, its main rival, to dominate these essential components for many electronic devices such as phones, computers, drones and military equipment.
Foxconn was already present in Mexico with a high-tech electronic card manufacturing plant opened in Jalisco in 2022.
According to the Industrial trade union Jalisco, this factory represented an investment of $100 million.
In partnership with the German ZF, Foxconn also launched last June a plant in Toluca (center) for the production of chassis assemblies for cars destined for the North American market, with an investment of about $42 million.
Also, in 2023 the Asian firm announced an alliance with the government of Chihuahua (north) for the development of sustainable energies.
This article has been translated after first appearing in Diario El Mundo