MEXICO CITY, May 22 (Reuters) – Taiwan-based electronics manufacturer Quanta Computer (2382.TW) will invest $1 billion in the northern Mexican state of Nuevo Leon, the company and state government said Monday.
Nuevo Leon Governor Samuel Garcia first announced the investment in a video shared to Twitter, adding that it would lead to the creation of 2,500 jobs.
Speaking from Quanta Computer’s offices in Taiwan, Garcia said the investment reflected the potential of “nearshoring” and was a sign of an economic boom in the state.
The announcement adds to the 2,500 jobs already created and nearly $500 million already invested by Quanta in Nuevo Leon, Pedro Campa, the company’s vice president of manufacturing operations in Mexico, told Reuters.
Campa did not say what the funds would go toward.
A Nuevo Leon spokesperson also confirmed the investment will expand Quanta’s existing operations in the state.
Quanta Computer is a supplier to electric vehicle maker Tesla (TSLA.O), which earlier this year announced it would build a new factory worth $5 billion in Monterrey, Mexico’s third-biggest city and an industrial hub.
Earlier on Monday, Garcia met with executives from Taiwanese electronics firm Foxconn <2317.TW>, a major Apple (AAPL.O) supplier, teasing on Twitter a “big announcement” soon.
Foxconn said in a statement that Garcia “comprehensively introduced the environment and opportunities for electric vehicle development in his state”, adding the company will release any other information at a future date.
It gave no other details.
Foxconn, better known for assembling iPhones, has ambitions to become a big player in the EV industry as it seeks to diversify its revenue base.
The company, which already has factories in Mexico mainly making televisions and servers, has previously mentioned the country as a possible EV production site
Reporting by Valentine Hillaire and Daina Beth Solomon; Editing by Brendan O’Boyle
Our Standards: The Thomson Reuters Trust Principles.