Taiwanese electronics manufacturer Foxconn has invested more than $200 million in its Mexican subsidiary.

As shown by filings with the Taiwanese Stock Exchange, on August 13, Foxconn invested $45m in its Mexican subsidiary FII AMC Mexico through its subsidiary Cloud Network Technology Singapore. An additional $168m was invested on August 25.

The investment will likely be used to fund AI server production capabilities. The company announced in October 2024 that it was building a facility in Guadalajara to build Nvidia’s GB200 Blackwell AI servers.

According to Focus Taiwan, on August 18, Foxconn Chairman Young Liu told the Taiwan Electrical and Electronic Manufacturers’ Association that the company intends to set up technology parks in the US or Mexico in order to bypass the potential 20 percent tariff that is set to be imposed on Taiwan.

Foxconn already has a presence in Mexico. In February of this year, it signed a Memorandum of Understanding with the northwestern state of Sonora to develop “smart city solutions” in the areas of transportation, public security, and ports.

Recently, Foxconn’s Q2 2025 earnings revealed that for the first time in its history, its Cloud and Networking Products division posted higher revenue than its Smart Consumer Electronics group.

Formally known as Hon Hai Technology Group, the company has significantly benefited from the AI boom, with total revenue for the quarter at $59 billion, up 16 percent year-over-year.

In July, Foxconn announced a partnership with electric motor and data center manufacturer Teco Electric and Machinery for a modular data center business.