Quanta Computer has established a new manufacturing facility in Mexico, where the ODM reportedly intends to hire 2,200 more people by the end of this year.
Additionally, Pegatron disclosed that it would spend NT$921 million (US$30.55 million) to build a facility in Mexico.
Since Tesla increased manufacturing at its Texas gigafactory, Mexico has been a popular destination for supply chain businesses.
According to rumors, Quanta has built a new facility in Nuevo Leon, Mexico, for a total of US$130 million. By the end of the year, Quanta anticipates having 2,200 people in Mexico, according to Pedro Campa, vice president of manufacturing operations there. The company will move its production capacity from Taiwan and Shanghai to Mexico.
Quanta chose not to respond to the reports. However, it claims that in response to client demands, it has been looking for viable production options all around the world.
According to sources, Quanta does not directly own the plant and makes controllers and other automotive electronics items for clients in Mexico.
Industry watchers think Quanta is establishing the facility in response to Tesla’s requirements. According to them, Quanta has been producing engine controller units (ECU) for Telsa for a number of years.
In addition to EnFlex, Faurecia, ZF Friedrichshafen, and APG Mexico, other Tesla suppliers have plants in Nuevo Leon as well.
The North American Free Trade Agreement (NAFTA), which permits the duty-free sale of domestically produced autos in North America, is one of Mexico’s many benefits.
Ivan Rivas, the secretary of economy for the state of Nuevo Leon, announced that in order to speed up customs clearances, the state will set aside a lane at the Colombia Solidarity port of entry at the US-Mexico border for Tesla suppliers. Additionally, the border authority is expanding the checkpoint’s six lanes to eight lanes.
According to industry sources, Quanta has also assisted Apple and Google in the development of self-driving technology, which has paved the way for collaboration with other Tier-1 automakers in the United States and Europe.
Elton Yang, a spokesman for Quanta, highlighted that the company will start to benefit from automotive electronics income in 2022. In the second half of 2022, Quanta anticipates launching EV-related product shipments.
According to sources, Quanta, Compal Electronics, Wistron, and Inventec have all been working on automotive electronics for a while but have been unsuccessful in breaking into the market. The ideal entry point for PC ODMs has evolved to be self-driving systems.
