Foxconn and Pegatron look at Mexico for new fabs

Could Mexico become a new electronics manufacturing powerhouse? A report from Reuters indicates both Foxconn and Pegatron are considering setting up new plants in Mexico. The news agency says firms are reexamining global supply chains, as the US-China trade war and the coronavirus pandemic have reshaped the competitive landscape.

Foxconn, which already has five factories in the country, is reportedly going to make a final decision on a new factory later this year. This plans would make iPhones for Apple. Similarly, Pegatron is said to be in early discussions with lenders to build an additional facility in Mexico for the assembly of chip and other electronic components.

The plans come as the idea of “near-shoring” gains ground in Washington. The Trump administration is exploring financial incentives to encourage firms to move production facilities from Asia to the United States, Latin America and the Caribbean.