Foxconn Invests $190M to Expand AI Servers in Mexico
On the evening of February 27th, Foxconn issued an official announcement disclosing an investment of approximately 453 million Mexican pesos (equivalent to around 190 million Chinese yuan) through its Singaporean subsidiary, Cloud Network Technology. This investment facilitated the acquisition of land in El Salto, Jalisco, Mexico, covering an expansive area of about 421,600 square meters. The infusion of funds and land acquisition align with Foxconn's strategic objective of expanding its Artificial Intelligence (AI) server production line.
Highlighted in the statement is the fact that Cloud Network Technology, Foxconn's Singaporean subsidiary, infused 30 million US dollars into the Mexican counterpart, FII AMC MEXICO S. DE R.L. DE C.V. Subsequently, the Mexican subsidiary utilized the capital to secure the mentioned land in El Salto, Jalisco, emphasizing that this investment is a response to operational requirements.
Analysts in the industry interpret Foxconn's investment in land acquisition through its Mexican subsidiary as a strategic maneuver to amplify the AI server production line in the region.
Foxconn's consistent expansion efforts in Mexico have gained momentum. Notably, in January of the current year, Foxconn declared a capital increase of 10 million US dollars in its Mexican subsidiary. Observers speculate that Foxconn's focus revolves around continuous capacity enhancement in its Mexican facilities, specifically targeting the flourishing sectors of AI servers and components for electric vehicles.
Insiders in the supply chain observe Foxconn's notable achievements in the realm of AI servers in 2023. Reports circulating in the market suggest that Foxconn has successfully secured all orders for Nvidia's H100 AI server modules in North America. The market sentiment is optimistic, recognizing Foxconn's commendable production capacity and yield for the H100 modules, positioning it favorably for competing in future orders, including Nvidia's B100 modules.
