US technology corporations are trying to convince major Taiwanese artificial intelligence server makers and commercial partners to establish a base in Mexico, with the aim of being closer to and within North America.
The Wall Street Journal report states that the idea has become very attractive to giants like Foxconn and would help companies thanks to the free trade agreement between the USA, Mexico and Canada – established in 2020.
Since this agreement between the three governments was reached, Mexico has become a favorable environment for investment in technology production. According to sources heard by the WSJ, Foxconn’s factories are already working – as are its artificial intelligence servers, benefiting Amazon, Google, Microsoft and NVIDIA.
According to the newspaper, companies such as Dell and HPE – which rely directly on production in East Asia – are also reducing the volume produced in China and are investing more in Southeast Asia and Mexico. In addition to it, others that are keeping an eye on the Mexican market are Pegatron, Wistron, Quanta and Compal.
Unofficial information also points out that there are around 300 Taiwanese corporations that currently operate in Mexico – reaching 70,000 employees and generating trade in North America (alongside the USA and Canada) that reaches $15 billion.
USA, Mexico and the server market
Despite the difficulties that Mexico faces, the US market is suitable for working with servers from closer locations.
The Wall Street Journal says it spoke to executives at Taiwan-based Inventec, which is eyeing developing manufacturing in North America. They point out that they already have a client known for being “a major American brand related to the development of artificial intelligence”.
However, Mexico needs to overcome some problems such as wage competition and public services that are known to be not so reliable. However, the agreement could bring greater development to the country and the absence of political disputes makes the area more likely to replace China as the next big “tech hub”.
Source: Tom’s Hardware
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