Taiwan’s Quanta Computer expects to begin production at a new Mexico facility in early 2025 as overwhelming demand for artificial intelligence servers forces the company to rapidly expand manufacturing beyond its traditional bases.
Executive Vice President Yang Qi-ling said orders remain beyond the company’s expectations, describing the expansion into Mexico as necessary rather than merely strategic diversification. The move reflects growing pressure from US tariff policies that have made Chinese production less viable for American customers.
Yang, who also serves as chief executive of Quanta Cloud Technology, the company’s server division, outlined plans to maintain aggressive capacity expansion across California and Tennessee facilities while adding the Mexico operation. The diversification strategy has shifted from optional to essential as manufacturers navigate trade tensions and supply chain restructuring.
Quanta’s production capacity remains fully booked through the second half of 2025, with AI servers accounting for more than 60 percent of total server revenue in the first half of this year. The company expects fourth-quarter shipments to reach peak levels following a third-quarter transition period between product generations.
Yang highlighted growing opportunities in sovereign AI projects, particularly in Saudi Arabia where the kingdom has launched HUMAIN, a state-backed AI company planning massive data center investments. These projects typically involve governments building independent AI infrastructure through self-operated data centers, co-location facilities, or cloud service partnerships.
Previous-generation Nvidia GB200 products continue attracting orders extending into 2026, while the company prepares for new GB300 chip production. However, uncertainty around US semiconductor regulations has delayed plans for advanced motherboard assembly operations in American facilities.
The expansion underscores how Taiwan’s contract manufacturers are reshaping global production networks as AI infrastructure demand surges across hyperscale customers including Meta, Google, and Amazon.
