Taiwan-based electronics manufacturers Foxconn and Pegatron are among companies eyeing new factories in Mexico, people with direct knowledge of the matter said, as the U.S.-China trade war and coronavirus pandemic prompt firms to reexamine global supply chains.
The plans could usher in billions of dollars in badly needed fresh investments over the next few years for Latin America’s second-largest economy, which is primed for its worst recession since the 1930s Great Depression.
Foxconn (2317.TW) (2354.TW) and Pegatron (4938.TW) are known as contractors for several phone manufacturers including Apple (AAPL.O). It was not immediately clear which companies they would work with in Mexico.
According to two of the sources, Foxconn has plans to use the factory to make Apple iPhones. However, one of the sources said, there had been no sign of Apple’s direct involvement in the plan yet.
Exclusive: Foxconn, other Asian firms consider Mexico factories as China risks grow https://t.co/Gpf5c88QcV pic.twitter.com/2M3oNtgond
— Reuters (@Reuters) August 24, 2020
Taiwan-based electronics manufacturers Foxconn and Pegatron are among companies reexamining global supply chains and eyeing new factories in Mexico instead of #China due to US-China tensions https://t.co/6ZSZPIaOHQ
— Adam Milstein (@AdamMilstein) August 24, 2020