Key Points
Some of the biggest U.S. companies in artificial intelligence have asked their Taiwanese manufacturing partners to step up production of AI-related hardware in Mexico, seeking to diminish reliance on China..
Taiwan-based Foxconn, the worlds largest contract electronics manufacturer, and other Taiwanese companies are heeding the call and investing more in Mexico, according to industry executives and analysts..
They are taking advantage of the U.S.-Mexico-Canada Agreement, the free-trade deal that took effect in 2020..
Arch Chen, Inventecs regional manager in Mexico, told a conference in Taiwan in December that one of his clients, a top American brand involved in AI development, initially said it wanted its equipment produced in the U.S. After inspecting facilities in Mexico, the client was impressed by the technology and opted to produce there instead, Chen said..
Major U.S. server manufacturers such as Dell and Hewlett Packard Enterprise have asked their suppliers to move some server and cloud computing production to Southeast Asia and Mexico, reducing reliance on China, people familiar with the matter said..
