For many, the first thing they hear is the name Foxconn brings to mind the production of the iPhone. That’s right, the Taiwanese company is the main manufacturer of Apple smartphones and other products. But it also makes companies like Nvidia, Amazon and others very warm: AI-related hardware. AND Great technology US companies would like this equipment to come from Mexico and not China, thank you very much.
Foxconn has listened to these demands and made significant investments in artificial intelligence in Mexico. According to data from the world’s largest contract electronics manufacturer, the country received $690 million in the last four years. “Wall Street” daily. Just this February, Foxconn acquired a piece of land in the western state of Jalisco for $27 million to facilitate a major expansion of AI server production, people familiar with the plan told the Journal.
Why Mexico?
In the race to build the latest and greatest AI technologyThe report shows that the largest technology companies in the US – Nvidia, Amazon, Google and Microsoft – are using Foxconn facilities in Mexico to meet their AI server needs. This is part of a larger trend called “friendshoring” or “nearshoring.” This is a geopolitical buzzword to describe the practice supply chains run only by countries that are close political partners.
In this particular case, Large Tech companies are trying to make sure of that fewer of their supply chains rely on Chinaa growing political enemy of the US. This change is also a consequence of 2020 free trade agreement between the US, Mexico and Canada, which convinced manufacturers to invest in these countries instead of China.
Mexico has turned out to be a lucrative investment for these operations and it is already causing confusion in world trade. Data released last month showed that, according to US Census Bureau data, for the first time in two decades, imports into the US from Mexico exceeded imports from China.
