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Taiwanese electronics giant Foxconn is making strategic moves to navigate the challenges posed by ongoing U.S. tariffs by announcing plans to build technology parks in the United States and Mexico. These parks are designed to help Taiwanese tech manufacturers circumvent the 20% tariffs imposed on imports from Taiwan, allowing smaller companies to stay competitive in the global market.
This move comes amid rising trade tensions and follows Foxconn’s commitment to investing over $900 million in a mega AI server plant near Guadalajara, Mexico. Despite tariffs and uncertainty, construction of this plant poised to be the world’s largest assembly facility for servers equipped with Nvidia’s cutting-edge GB200 AI chips is progressing rapidly, with completion expected by late 2025 or early 2026.
Foxconn’s technology parks in North America will offer favorable terms, including tax incentives and logistical advantages negotiated predominantly by host countries. Mexico’s strategic location coupled with comprehensive trade agreements like USMCA makes it an attractive hub for semiconductor manufacturing and AI infrastructure development. Foxconn already has significant operations in Mexican states like Jalisco and Chihuahua, where it continues to expand production capacity focused on AI servers and semiconductor chips.
Additionally, Foxconn announced a partnership with SoftBank to develop a high-tech data center project in Ohio, part of the expansive $500 billion “Stargate project” aimed at furthering U.S. AI infrastructure. This collaboration underscores Foxconn’s leading role in the American tech manufacturing landscape and the growing emphasis on domestic AI capabilities in the global technology race.
These developments highlight Foxconn’s proactive efforts to adapt to the evolving trade environment while solidifying its position as a key player driving innovation in AI and semiconductor sectors within North America.
