Foxconn’s $900 million AI server plant is set to be completed within a year despite President Donald Trump’s new U.S. tariffs.
The governor of Jalisco, Pablo Lemus Navarro, confirmed the timeline of mega-AI server plant near Guadalajara, Mexico, saying then that the construction would finish in late 2025 or early 2026.
Foxconn’s project consists of two phases. The company is building out its existing plant in El Salto and building a new plant next door. It is now applying for permits, and Jalisco’s Secretary of Economic Development, Cindy Blanco, said the state would also offer fiscal incentives to support the investment.
Jalisco thrives as a semiconductor hub despite trade tensions
The AI server plant’s construction continues despite President Trump’s new tariffs, including one of 25% on imports from Mexico and Canada and another of 20% on Chinese goods.
Mexican President Claudia Sheinbaum is set to announce countermeasures of her own. Governor Lemus said, however, that companies still want to invest in Mexico and in Jalisco in particular.
About 70% of Mexico’s semiconductor businesses are based in Jalisco, making the state an important part of the country’s tech industry. New industrial parks have attracted $300 million of investment this year, and 60% of all available space has been pre-leased.
Foxconn is not the only company growing in Jalisco. Semiconductor behemoth ASE Technology Holding Co.’s ISE Labs purchased land to build a packaging and testing site, and Micron Technology Inc. is opening an engineering and operations center in Guadalajara. The Mexican government also has its own “Kutsari” initiative to reinforce the semiconductor industry.
Jalisco continues to attract global investment, even amid U.S.-Mexico trade tensions. Governor Lemus said the state was open to all investors, including Chinese companies.
Foxconn set to dominate AI server manufacturing under Stargate project
Recent reports indicate that Foxconn will secure the exclusive contract for AI server manufacturing under the Stargate Project. An official announcement is reportedly expected as early as this month.
President Donald Trump announced in January that OpenAI, SoftBank Group, and Oracle would launch Stargate and invest USD 500 billion over the next four years to keep the U.S. ahead in the global AI race.
The Stargate initiative’s first major project is a massive data center complex spanning approximately 875 acres in Texas. The complex is expected to become a central hub for powering AI systems. Foxconn is currently the only major AI server manufacturer with a production facility in Texas, giving it a unique regional advantage.
With its facilities in Wisconsin and other locations, Foxconn is the most deeply invested and extensively involved Taiwanese electronics company in the “Made in the USA” initiative.
Foxconn has been actively expanding its presence across the U.S. The company will reportedly manufacture servers in Houston to supply Apple’s Apple Intelligence cloud services, and the related facilities are expected to be operational by 2026.
Moreover, the company announced in mid-January 2025 that it would invest USD 128 million to purchase land and facilities in California to expand its AI server production capacity.
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