Foxconn Invests US$168 Million to Expand AI Server Production

Taiwan-based Hon Hai Precision Industry Co., better known as Foxconn, announced a US$168 million investment in its Mexican subsidiary as part of a global expansion oriented toward AI server production. The investment, made through one of Foxconn’s Singapore-based affiliates, will increase its stake in FII AMC Mexico, the company said in a filing to the Taiwan Stock Exchange.

This announcement follows a US$241.2 million transaction in August 2024 through the same channel, highlighting Mexico’s growing role in Foxconn’s AI supply chain.

Foxconn, the world’s largest contract electronics manufacturer, has made AI servers a strategic priority. The company expects sales from the sector to surpass NT$1 trillion (US$32.7 billion) this year, accounting for roughly half of its total server business.

Founded in 1974, Foxconn operates research and production facilities in China, India, Japan, Vietnam, and the United States, among other countries. It has also become a key manufacturer of Nvidia’s GB200 servers, benefiting from surging demand tied to AI adoption.

Foxconn Technology in Mexico

Foxconn Technology Group began operations in Mexico in 2004. After 20 years of investment and steady growth, the company has established 14 manufacturing plants in nine cities, including: Juarez, Chihuahua, Monterrey, and Guadalajara. Today, Foxconn Mexico employs more than 35,000 collaborators and engineering specialists.

The company’s main lines of work in the country include production of advanced electronic components, automotive manufacturing, and information and communication technologies (ICT), as well as development of local ecosystems under the BOL model (Build–Operate–Localize).

In response to transformations in global supply chains, Foxconn has designated Mexico as its regional manufacturing platform for North and South America. In partnership with the Mexican government and local companies, the firm aims to strengthen national industrial capacity and contribute to economic growth through a robust and highly localized supply chain, according to the company´s website.