Taiwanese electronics manufacturer Quanta Computer will invest US$1 billion in the northern Mexican state of Nuevo León, the company and the state government announced on Monday.
Nuevo León Governor Samuel García first announced the investment in a video shared on Twitter, in which he added that it would mean the creation of 2,500 jobs.
From Quanta Computer’s offices in Taiwan, Garcia said the investment reflected the potential of “nearshoring” and was a sign of an economic boom in the state.
The announcement adds to the 2,500 jobs already created and nearly $500 million already invested by Quanta in Nuevo León, Pedro Campa, the company’s vice president of manufacturing operations in Mexico, told Reuters.
Campa did not say what the funds would be used for.
A Nuevo Leon spokesman also confirmed that the investment will expand Quanta’s existing operations in the state.
Quanta Computer is a supplier to electric vehicle maker Tesla , which earlier this year announced it would build a new $5 billion factory in Monterrey, Mexico’s third-largest city and an industrial hub.
Earlier on Monday, Garcia met with executives from Taiwanese electronics company Foxconn , one of Apple’s main suppliers, and warned on Twitter of a “big announcement” coming soon.
Foxconn said in a statement that Garcia “comprehensively presented the environment and opportunities for electric vehicle development in his state,” adding that the company will release any further information at a future date.
He did not provide further details.
Foxconn, best known for assembling iPhones, has ambitions to become a major player in the electric vehicle industry as it seeks to diversify its revenue base.
The company, which already has factories in Mexico, mainly for televisions and servers, has previously mentioned the country as a possible production center for electric vehicles.