Quanta Computer to invest $1 bln in northern Mexico (updated)

Quanta Computer

23/05/2023 06:04

(Adds comment from Foxconn, details, paragraphs 9-12)
       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  2354.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 Brendan O'Boyle, Kylie Madry, Valentine Hilaire
and Daina Beth Solomon; Additional reporting by Ben Blanchard in
Taipei; Editing by Kim Coghill and Stephen Coates)
 ((Brendan.OBoyle@thomsonreuters.com;))