Foxconn plans to build a microchip manufacturing plant in Mexico to produce Nvidia's (NVDA) ultra-powerful Blackwell processors.
Taiwan-based Foxconn, which is the biggest contract electronics manufacturer on the planet, is best known as Apple's main iPhone assembler.
Now, Foxconn is turning its attention to making microchips as demand explodes amid the artificial intelligence (A.I.) boom.
Specifically, Foxconn is building a massive plant in Mexico where it will manufacture the GB200 microchip for Nvidia.
The GB200 chip is part of the Blackwell family of cutting-edge processors that can run advanced A.I. applications and models at extremely fast speeds.
The exact size and investment in the new Mexico facility haven’t been disclosed. But Foxconn
already has a presence in Mexico and has invested $500 million U.S. in the state of Chihuahua.
Foxconn's executive team has said that they want to diversify away from the company’s main role of building consumer electronics for Apple.
Nvidia’s stock has risen 182% over the last 12 months to trade at $127.72 U.S. per share.
