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.

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.

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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The 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.