U.S. tech giants are keen for their Taiwanese AI server manufacturing partners to set up in Mexico, according to a new report published by the Wall Street Journal. The idea has proven attractive to giants like Foxconn, and geopolitics aside, it would move manufacturing closer to U.S. tech firms. Mexican expansion plans will also benefit from the attractive United States of America, Mexico, and Canada (USMCA) free trade agreement established in 2020.
Attracting manufacturers from Asia to USMCA countries is an example of nearshoring and, since the trade agreement has been signed, Mexico has been the key beneficiary of investment in tech production. According to sources cited by the WSJ, Foxconn’s massive new facilities in Mexico are already manufacturing AI servers for tech giants such as Amazon, Google, Microsoft, and Nvidia. (Those companies did not confirm to the newspaper whether Foxconn is making their servers in Mexico.)
