- Hon Hai Precision Industry Co Ltd (better known as Foxconn) is a Taiwanese multinational that manufactures custom electronics.
- It is the largest manufacturer of electronic devices globally and the largest exporter in China.
- At the request of the United States, it is moving part of its factories to the West.
Foxconn and other technology providers of Taiwanese origin have made the decision to increase its production capacity in Mexico.
The goal is to satisfy the growing demand for electronic devices in the region, especially in the United States. These technological inputs are then used to manufacture everything from telephones to electric vehicles and servers.
The information was published this Tuesday, January 24, by the Japanese newspaper Nikkei Asia, the world’s largest financial newspaper, with a daily circulation of more than 1.73 million copies.
“Mexico is one of the key countries for Foxconn’s strategic investments this year,” says the report by Asian Nikkei citing as a source a person with direct knowledge of the subject.
Foxconn is the world’s largest contract electronics manufacturer and Apple’s largest assembler of iPhone phones.
With the increase in production, the Taiwanese company will have manufacturing options in the region in Ohio and Wisconsin (United States) and in Mexico.
The decision is in line with the idea of the big Asian companies to shift production to factories in the West as a result of the changes in the policies of the United States.
Foxconn diversifies investments
In addition to geographic expansion, Foxconn also wants to reduce its reliance on smartphones and consumer electronics, which until 2022 accounted for nearly 60 percent of its revenue.
The idea of the Taiwanese is to diversify into areas such as the manufacture of electric cars, a market that they consider a business of 35 billion by 2025.
Foxconn Chairman Liu Young Way was clear in a May conversation with shareholders: “There is a lot of uncertainty in the markets,” he said. “There are big challenges on the supply and demand side.”
Liu said inflation was affecting demand for lower-end consumer electronics and the impact on Foxconn was not that big just because most of its products are high-end.
“We are closely watching when inflation will affect mid-range and high-end products,” the official said.
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