Industry Findings: Mexico’s strategic nearshoring trend is turning it into a regional assembly and module hub for AI hardware; manufacturing and logistics advantages are drawing contract manufacturing for boards and server assembly, while policy incentives in 2024–2025 encourage US-headquartered firms to place capacity there to cut lead times and tariffs, boosting demand for packaged accelerator modules rather than bare chips.
Industry Progression: Foxconn and other OEMs have escalated investments in Mexico’s northern states: Foxconn’s announced large-scale Nvidia-linked manufacturing facility (Oct-2024) and subsequent expansion plans (2024–2025) signal that module and systems assembly will scale locally; this shortens supply chains for North American hyperscalers and OEMs and raises Mexican integration capabilities for AI accelerators.
Industry Player Insights: Foxconn’s 2023–2024 alignment with NVIDIA manufacturing programs and Intel/Flex contract work continues to shift Mexico from primarily PCB assembly toward higher-value server and module production. This transition strengthens OEM-led procurement and elevates Mexico’s position as a nearshore manufacturing node for North American cloud and enterprise hardware.