Will Mexico Become the New China?
A leading Apple iPhone contractor in Taiwan is considering new factories in Mexico as global supply chains are caught in the middle of the Sino-U.S. trade dispute.
Electronics manufacturer Foxconn is reportedly planning to finalize a decision this year to open a new facility in Mexico to make iPhones, according to two sources telling .
Apple, which is reportedly not directly involved in the plan, did not comment.
The report also says that Foxconn has reached out to the Mexican government and is involved in early-stage talks.
In a statement to Reuters, Foxconn confirms that while it is increasing global operations, it also indicated there are no current plans to expand in Mexico.
今日足球单场分析The company reported a to $778.54 million during its earnings release last week, which exceeded analyst predictions.
今日足球单场分析Foxconn isn't the only Taiwan-based iPhone-maker potentially looking to move to Mexico.
今日足球单场分析Pegatron is also reportedly engaged in early discussions about having a factory in Mexico to make chips and other electronic components.
Luxshare Precision, a leading manufacturer of Apple Airpods, is also reportedly eyeing a move to Mexico to build undisclosed product lines.
今日足球单场分析Both Pegatron and Luxshare declined to comment.
A Changing Global Supply Chain
今日足球单场分析Through pressure from the Trump administration, the lure of potential tax credits, and a favorable new U.S.-Mexico-Canada trade deal with tariff-free imports, companies are strongly considering moving portions of its supply chains back to North America.
With the pandemic slowing Pacific trade, more firms are realizing .
While the pandemic has nudged businesses to consider these changes, Mexico's terrible handling of the pandemic is also cited as a reason to avoid moving operations to the country.
Foxconn has already embraced the concept of "near-shoring" as the company currently maintains several factories in Mexico for manufacturing televisions and servers.
今日足球单场分析In a call with investors last week, Foxconn Chairman Liu Young-way touted his company's success with establishing "two sets of supply chains" and claimed that nearly 30% of its products were already made out of China.