Taiwanese Foxconn Driven Towards Mexico Due To Demand For EV, Sophisticated Chips And Geopolitical Tensio

• Taiwanese tech suppliers ramped up production capacity in Mexico to tap North America's growing demand for electric vehicles and servers.
• KeyApple IncAAPL iPhone assemblerHon Hai Precision Industry Co LtdHNHPFFoxconnand others aimed to help the U.S. and their clients shift their supply chain from East to West, Nikkei Asiareports.
• Leading contract electronics manufacturer Foxconn recently established a headquarters in Mexico.
• Foxconn, which also countsAlphabet IncGOOG GOOGLGoogle, andAmazon.Com Inc'sAMZNAWSas clients, prioritized electric vehicles amid the slowing smartphone market.
• Foxconn reportedly secured new EV clients in Mexico. It will have three local manufacturing options for EV clients in North America: Ohio, Wisconsin, and Mexico.
• iPhone assemblerPegatron CorpPGTRF, MacBook makerQuanta Computer, iPad supplierCompal ElectronicsandInventec, a notebook manufacturer forHP IncHPQ andDell Technologies IncDELL, look to grow their manufacturing presence in Mexico this year.
• Tesla IncTSLA andGeneral Motors CoGM supplier Pegatron earmarked $300 million - $350 million in capital expenditures 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.
• Chiu Shih-fang, a supply chain analyst with the Taiwan Institute of Economic Research, said, "The U.S. policy is really the driving force behind this shift, which will be led by the local production demand for EVs as well as servers."
• The U.S. emphasized domestic production of cutting-edge semiconductor chips following growing geopolitical tensions with China, further aggravated by the Communist country's role in disrupting the globalsemiconductor supply chain due to the pandemic.

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