(Yicai) Oct. 28 -- Foxconn Industrial Internet, a Chinese server manufacturing partner of Nvidia and Amazon, will acquire assets worth MXN924 million (USD46.2 million) in Mexico from its parent to enhance its original equipment manufacturing business in North America.

A local unit of FII will buy factory buildings and related equipment from Hon Hai Precision Industry, also known as Foxconn Technology Group, in Tlaquepaque in western Mexico, the Shenzhen-based firm that also counts JD.Com and Alibaba Group Holding as some of its clients announced recently. Hon Hai makes iPhones for Apple.

The demand for server products is growing rapidly, driven by increased cloud infrastructure needs stemming from generative AI applications, the listed firm said. Through the acquisition, FII intends to increase its local production capacity to deepen its cooperation with major global server brands in North America and to better meet customer requirements in areas such as new product development, rapid mass production, and global delivery, it added.

The AI server business has become one of FII's main growth engines. Last year, shipments in this sector grew rapidly, leading to a significant increase in market share, according to the latest annual report which did not provide more specific data.

However, the enhanced manufacturing capacity did not boost FII's share price as the stock [SHA: 601138] closed 1.6 percent lower at CNY25.26 (USD3.50) in Shanghai today.

Editor: Emmi Laine