Leading electronics and contract manufacturer Quanta Computer plans to invest $1bn in the Mexican state of Nuevo Leon to expand its operations, according to a recent announcement.
Nuevo Leon Governor Samuel Garcia first announced the investment in a video shared on Twitter from Quanta Computer’s headquarters in Taiwan, in which he says that the investment will create 2,500 jobs.
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Garcia said the investment reflected the potential of nearshoring (also known as ‘friendshoring’) and was a sign of an economic boom in the state.
The announcement adds to Quanta’s existing $500m investment in Mexico, announced last month, which also created 2,500 jobs, Pedro Campa, Quanta’s vice-president of manufacturing operations in Mexico, told Reuters. Campa did not say what the new funds will be allocated to, but a company spokesperson has confirmed that the investment will expand Quanta’s existing operations in the state.
Quanta Computer is a supplier to electric vehicle maker Tesla (among other household names), which earlier this year announced it would build a new $5bn factory in Monterrey, Mexico.
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Although Mexico’s economy faced extreme difficulties due to the Covid-19 pandemic, the country’s resilient manufacturing sector has already surpassed pre-pandemic levels. This boost can be partially attributed to nearshoring of manufacturers to Mexico (mainly in the automotive industry) in order to be closer to the US and Canadian markets.
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By GlobalDataThe Mexican Ministry of Economy recently reported that the country received $35bn in FDI last year, up from $31bn in 2021. Manufacturing reigns as the most influential sector in that increase, accounting for 36% of the country’s total FDI, with the US and Canada standing out as Mexico’s two main trading partners.
