KUALA LUMPUR, March 14 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) ended the week slightly higher, in line with regional indices despite the weaker performance on Wall Street overnight. At 5 pm, the FBM KLCI rose 2.12 points or 0.14 per cent to 1,512.15 from Thursday’s close of 1,510.03. The market bellwether opened 10.08 points lower at 1,499.95, and moved between 1,493.29 and 1,516.25 throughout the day. On the broader market, gainers outpaced losers with 680 to 292, while 437 counters were unchanged, 1,009 untraded, and 13 suspended. Turnover was marginally lower at 3.24 billion units worth RM2.5 billion from 3.25 billion units worth RM2.90 billion on Thursday.
Key Developments:
- Foxconn’s AI server plant in Jalisco will be completed within a year, despite US tariffs on Mexico.
- US$900 million investment will create the world’s largest Nvidia-powered AI server assembly plant.
- Jalisco’s semiconductor industry is booming, with new investments from ASE, Micron, and Foxconn.
- State government is fast-tracking permits and offering incentives to accelerate the project.
- Mexican industrial sector remains strong despite Trump’s 25% tariff threat.
Foxconn’s AI Expansion in Mexico
Foxconn Technology Group (Hon Hai Precision Industry Co) is pushing ahead with its US$900 million AI server megaplant in Jalisco, Mexico, despite potential US trade tariffs, according to Jalisco Governor Pablo Lemus Navarro.
The state-of-the-art facility will be dedicated to assembling AI servers powered by Nvidia's GB200 chips, making it the largest such plant in the world.
The project consists of two phases:
- Expanding an existing Foxconn facility in El Salto.
- Building a brand-new plant nearby, set for completion by late 2025 or early 2026.
“Construction should be finished in a year,” Lemus told Bloomberg.
Government Support & Industrial Growth
- Foxconn is securing final permits from the municipal government of El Salto to begin work.
- The Jalisco government is offering fiscal incentives to expedite construction.
- Cindy Blanco, Jalisco’s Secretary of Economic Development, assured that the state would be "as supportive as possible" in facilitating permits and regulatory processes.
US Tariffs Won’t Halt Investment
Trump’s 25% tariffs on Mexican imports could raise production costs for Foxconn and other tech firms, but investments in Jalisco continue to rise, Lemus stated.
“Regardless of what happens with Trump’s tariffs, companies will keep working in Mexico,” Lemus said.
- US$300 million is being invested this year in industrial parks across Jalisco.
- Demand is surging: 60% of available industrial space (600,000 square meters) is already pre-leased.
Jalisco: Mexico’s Semiconductor Hub
Jalisco accounts for 70% of Mexico’s semiconductor industry, attracting key global players:
- ASE Technology’s ISE Labs acquired land in Tonalá for a semiconductor packaging and testing facility.
- Micron Technology is setting up a new engineering and operations center in Guadalajara.
- Mexico’s President Claudia Sheinbaum’s "Kutsari" initiative is backing a new semiconductor design centerin Jalisco.
China’s BYD Pauses Mexico Expansion
- China’s BYD Co, the top Chinese EV maker, had considered Jalisco for a new plant.
- However, the company paused its expansion plans in September, citing US political uncertainty.
- Jalisco welcomes investments from all countries, including China, Lemus affirmed.
The Big Picture: Mexico’s AI and Semiconductor Boom Continues
Despite US-Mexico trade tensions, Jalisco is emerging as a key hub for AI servers and semiconductor manufacturing.
With Foxconn, Micron, and ASE making major moves, the state is positioning itself as a critical player in global tech supply chains, regardless of Trump’s protectionist policies.
Comments
Post a Comment