Foxconn, a leading technology manufacturer, has confirmed the construction of the world's largest chip manufacturing plant for NVIDIA, located in Mexico. The plant will focus on the production of the superchips GB200, essential for NVIDIA's next-generation artificial intelligence, known as Blackwell. This was assured by Benjamin Ting, senior vice president of Foxconn, in statements to Reuters, stressing that this new infrastructure will be the largest on the planet dedicated to the manufacture of these advanced processors.
Mexico's strategic location and its proximity to the United States are key factors behind Foxconn's decision. This new plant seeks to meet the growing global demand for chips for the AI industry, a sector that is undergoing rapid expansion. Foxconn president Young Liu also confirmed the scale of the project, without providing additional details on the investment or exact location.
The AI boom drives the construction of the new plant
The exponential growth in demand for artificial intelligence processors has been a determining factor in Foxconn's decision to expand its production capacity in Mexico. NVIDIA, which does not directly manufacture its own chips, depends on partners such as Foxconn to supply its customers. "The demand is incredibly large," explained Ting, who also noted that the new facility will be equipped with advanced technologies, such as liquid cooling systems, needed for the GB200 server infrastructure.
Foxconn already has a significant presence in Mexico, with facilities in Tijuana andan investment of more than US$500 million in the state of Chihuahua. However, the company believes that these infrastructures are not sufficient to meet current demand, especially with the AI revolution underway.
Nearshoring and diversification: opportunities for Mexico
Foxconn's new project in Mexico not only represents a commitment to expanding its capacity in the chip sector, but also reinforces a nearshoring strategy. This approach, which allows products to be assembled in Mexico and then exported to key markets such as the United States, offers a competitive advantage in terms of distribution costs. The nearshoring strategy has also been considered by other technology companies, such as Tesla, which plans to develop a plant in Nuevo León with a similar approach.
In addition to its commitment to the semiconductor industry, Foxconn has begun to diversify into other sectors, such as electric vehicles, with its Foxtron brand. Although this market faces increasing competition, the company sees opportunities in the elimination of traditional manufacturing barriers, which could revolutionize the automotive industry.