Major Chinese smart device manufacturers and assemblers such as Foxconn are planning to open factories in Mexico and reduce their dependence on China.
The trade war between the United States of America and China led to changes in corporate strategies, which prompted the major smart device manufacturers in China to consider Mexico as a new destination to open their factories there.
According to Reuters news agency, major Chinese smart device assemblers and manufacturers such as Foxconn, Pegatron and Luxshare are considering the option of opening factories in Mexico instead of relying heavily on China.
The choice of Mexico is not absurd, as these factories may benefit from trade agreements between Canada, Mexico and the United States, allowing them to export customs exemptions to the United States under certain circumstances.
This is not the first time that Foxconn specifically thinks about manufacturing in new countries. It plans to invest one billion dollars in India to manufacture iPhones there, which makes it save 20% customs duties on electronic devices.
Earlier, there were statements by the Foxconn Board Chairman stating that the company is working on searching for two new places for the supply chain in response to the increasing intensity of the Sino-American conflict, and these two places may be India and Mexico.
The approach to Mexico has not yet been decided, but it is under study in all respects, especially the economic feasibility, and a final decision is expected to be issued at the end of the year.