Taiwan’s Tech Companies Looking to Mexico for New Investments
- January 25, 2023
- Posted by: Quatro Strategies
- Category: Manufacturing
Taiwan’s tech companies, including Foxconn, are looking to ramp up their production capacity in Mexico to meet a growing demand for electric vehicles (EVs) and servers to be made in North America. Foxconn, the world’s largest contract electronics manufacturer and a key Apple supplier, is considering local manufacturing options in Ohio, Wisconsin and Mexico for EV clients , and designated Mexico as a key location for strategic investments this year. Foxconn and other Taiwanese manufacturing companies are aiming to help the U.S. and their clients to shift their supply chain from East to West.
Leading contract electronics manufacturer Foxconn recently established a headquarters in Mexico.
Foxconn, which also includes Google and Amazon’s AWS in its clients list, has been looking to develop EV manufacturing operations amid a slowing market for smartphones, and to diversify product range. The company is said to already secure new EV clients in Mexico.
iPhone assembler Pegatron, MacBook manufacturer Quanta, iPad supplier Compal and HP and Dell contractor Inventec are also looking to grow their manufacturing operations in Mexico this year.
Pegatron, which also supplies to Tesla and GM, earmarked $300 million-$350 million this year for Mexico and Southeast Asia.
Compal looked to grow capacity at the Mexico facility for its automotive electronics business.
Quanta hired more engineers with expertise in automotive electronics computing systems in Mexico.
The shift from Taiwanese companies is considered a direct result of the U.S. China policy and the Inflation Reduction Act, which incentivizes local production for EVs.
The U.S. emphasized domestic production of cutting-edge semiconductor chips following growing geopolitical tensions with China.
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