Apple supplier Foxconn eyes new plants in Mexico       

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Taiwan-based electronics manufacturers Foxconn and Pegatron are among companies eyeing new factories in Mexico, according to sources, as the US-China trade war and coronavirus pandemic prompt firms to reexamine global supply chains.

Foxconn and Pegatron are known as contractors for several phone manufacturers including Apple. 

It was not immediately clear which companies they would work with in Mexico. According to two of the sources, Foxconn has plans to use the factory to make Apple iPhones. 

However, one of the sources said, there had been no sign of Apple’s direct involvement in the plan yet.

Foxconn is likely to make a final decision on a new factory later this year, and work will commence after that, the two sources  said. Apple spokesman Josh Rosenstock declined to comment. 

Pegatron is also in early discussions with lenders about an additional facility in Mexico. Pegatron declined to comment.

Foxconn has five factories in Mexico mainly making televisions and servers. The plans come as the idea of “near-shoring” gains ground in Washington. 

The Trump administration is exploring financial incentives to encourage firms to move production facilities from Asia to the US, Latin America and the Caribbean.

“The company indeed has contacted the (Mexican) government,” a third source said about Foxconn, adding the talks were at an early stage and rising cases of coronavirus in Mexico were a major concern for the possible investment. 

- Reuters