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Foxconn Mega-AI Plant Ready in a Year Despite Trump Tariffs

Mar 04, 2025 - financialpost.com
Foxconn is set to complete construction of a mega-AI server plant near Guadalajara, Mexico, within a year despite potential new tariffs from President Donald Trump. The plant, which will be the world's largest assembly facility for servers powered by Nvidia's GB200 AI chips, represents a $900 million investment by Hon Hai Precision Industry Co., Foxconn's official name. The project involves expanding an existing facility in El Salto and building a new plant nearby. Jalisco Governor Pablo Lemus Navarro stated that the state government will provide fiscal incentives and support to facilitate the project's completion.

Despite the threat of increased tariffs, investment in Jalisco is rising, with $300 million being invested in industrial parks this year. The state, home to 70% of Mexico's semiconductor industry, continues to attract new investments, including ASE Technology Holding Co.'s new semiconductor facility and Micron Technology Inc.'s engineering center. Mexican President Claudia Sheinbaum plans to announce countermeasures to Trump's tariffs, while Jalisco remains open to investments from all countries, including China.

Key takeaways:

  • Foxconn's mega-AI server plant near Guadalajara, Mexico, will complete construction in a year despite new tariffs from President Donald Trump.
  • Hon Hai Precision Industry Co. is investing about $900 million in the plant, which will use Nvidia Corp.'s GB200 AI chips.
  • Jalisco Governor Pablo Lemus Navarro stated that investment in the state is rising, with $300 million being invested in industrial parks this year.
  • Mexico's President Claudia Sheinbaum plans to announce countermeasures to Trump's tariffs, while Jalisco remains open to investments from all countries.
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