Taiwanese electronics manufacturing company Quanta Computer is planning to invest $1bn in Mexico’s Nuevo Leon, reported Reuters.
Nuevo Leon Governor Samuel Garcia first announced the investment, which is expected to create 2,500 jobs, the report said.
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Garcia, who was speaking from Quanta’s offices in Taiwan, noted that the investment highlighted the potential of “nearshoring” and signalled a state-wide economic upswing.
Nearshoring refers to the practice in which companies relocate a part of their production to countries that are close to their target markets to mitigate the impact of supply chain disruptions.
According to Pedro Campa, vice president of manufacturing operations for Quanta Computer in Mexico, the announcement adds to the 2,500 jobs and approximately $500m that the Taiwanese business has already invested in Nuevo Leon.
The executive did not provide the specifics of the investment.
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By GlobalDataA spokesperson for Nuevo Leon stated that the investment will enable Quanta to expand its current business operations in the state.
Quanta supplies components to electric vehicle (EV) manufacturer Tesla, which plans to set up a $5bn factory in Monterrey, Mexico.
Earlier, Garcia met with executives from Foxconn, an Apple supplier, and hinted at a forthcoming “big announcement” on Twitter.
The meeting was confirmed by Foxconn, which added that Garcia provided an overview of the EV manufacturing opportunities in Nuevo Leon.
Foxconn, which already operates factories in the country, is looking to expand its presence in the EV space, with Mexico being a potential location for EV production.
During the first quarter of 2023, foreign direct investment in Mexico surged 48% in comparison with the same period last year, reported Bloomberg, citing the Mexican Economy Ministry.
The rise in investment is a result of businesses investing in Mexico to be nearer to customers in North America and it highlights the growing trend of corporate nearshoring, the publication said.
