When many people hear the name Foxconn, they immediately recognize it. Reminds me of iPhone manufacturing. Indeed, this Taiwanese company is a major manufacturer of Apple smartphones and other products. But at the same time, companies like Nvidia and Amazon also make in-demand AI-related hardware.and big tech American companies want their hardware to be made in Mexico, not China. thank you.
Foxconn listened to those calls and made a major AI investment in Mexico. The world's largest contract electronics manufacturer reported that it had pumped $690 million into the country over the past four years. wall street journal. 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 construction competition The latest and greatest AI technologyAccording to the report, the largest US tech companies (Nvidia, Amazon, Google, Microsoft) are using Foxconn's 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 that describes the act of: Operate supply chains only through countries that are politically close partners.
In this particular case, a large technology company is trying to ensure that: Supply chains dependent on China are decreasingan increasingly political frenemy in the US, this change is also an effect of 2020 free trade agreement Between the US, Mexico and Canada, manufacturers are being persuaded to invest in these countries rather than China.
in mexico It has emerged as a profitable investment. Because of these operations, it has already disrupted world trade. Data released last month U.S. imports from Mexico have exceeded imports from China for the first time in 20 years, according to data from the U.S. Census Bureau.
