Apple’s assembly partners are reportedly considering opening new factories in Mexico, in what may be an attempt by Apple to diversify its supply chain away from China.
Foxconn and Pegatron are reportedly exploring investments in new factories in Mexico.
According to the El Economista report , Foxconn is specifically planning to use the facility to produce the iPhone .
Foxconn already has five factories in Mexico, but as the report explains, these are currently used primarily to manufacture televisions and servers. Now, the company will focus on bringing iPhone production to Mexico as well:
According to two of the sources, Foxconn plans to use the facility to produce Apple’s iPhone. However, there are still no signs of Apple’s direct participation in the plan.
Foxconn is likely to make a final decision later this year and work on the factory will begin after the decision is made. Details about Pegatron’s plans in Mexico are less clear, and sources say iPhone production may be one of the planned changes.
The report also points out that the Trump administration is actually thinking about incentives that would encourage companies like Foxconn and Pegatron to move closer to the United States:
The plans arise when the idea of a “close relocation” gains ground in Washington. The Trump administration is exploring financial incentives to encourage companies to move their manufacturing facilities from Asia to the United States, Latin America and the Caribbean.
Finally, the report adds that Luxshare is also considering a new plant in Mexico , but it is not immediately clear which product lines could be moved. Luxshare is the leading manufacturer of AirPods.
Apple is trying to reduce its dependence on China on how much the world has been affected by the COVID-19 pandemic and while a trade war between the United States and China is underway. In fact, in a statement to The Times of India , Apple said it is making the 2020 iPhone SE in India for local buyers.
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