Foxconn Plans $9 Billion AI Server Factory in Mexico Using NVIDIA Chips

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Mar 04, 2025

The Governor of Jalisco, Mexico, Pablo Lemus Navarro, has announced that Foxconn, also known as Hon Hai, is planning to build a massive artificial intelligence (AI) server factory near Guadalajara. The factory is expected to be completed within a year.

The investment for this project is approximately $9 billion. Once completed, it will become the largest AI server assembly plant globally, utilizing NVIDIA's advanced GB200 AI chips.

The project will be executed in two phases: an expansion of Foxconn's existing facility in El Salto and the construction of a new factory nearby. It is anticipated that the construction will be finished within a year, with operations expected to begin by the end of this year or early next year.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.