Apple partners Foxconn & Pegatron considering moving iPhone mfg from China to Mexico

Amid the trade war between the United States and China, Apple has been extensively reducing its reliance on the Asian nation and is now considering turning its gaze towards Mexico.

Apple manufacturers Foxconn and Pegatron are reportedly looking to invest in new factories in Mexico. It is said that Foxconn is specifically planning to use the units to manufacture the iPhone.

The company already has five factories in Mexico, these used primarily to manufacture televisions and servers. This time, Foxconn would focus on bringing some iPhone manufacturing to Mexico as well.

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However, reports state there were still no signs of Apple’s direct participation in the plan. Foxconn is likely to make a final decision by the end of the year, and work on the factory would begin shortly after. Details about Pegatron’s plans in Mexico are still unclear, and it’s uncertain whether it plans to shift Apple manufacturing to the US.

Besides this, Luxshare, Apple’s primary manufacturer of AirPods is also considering to open a new factory in Mexico. Although it’s not immediately clear which product lines could be shifted.

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Trump administration encourages firms to relocate

This comes amid reports that the Trump Administration is exploring incentives that would encourage companies like Foxconn and Pegatron to move closer to the United States.

The idea of “close relocation” has been gaining ground in Washington ever since the United States locked horns with China over a score of issues. The Trump administration is looking into financial incentives to encourage companies to move their manufacturing units from China to the United States, Latin America and the Caribbean.

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China refutes reports on shift to Mexican factories

China state-affiliated media Global Times on Wednesday stated that Foxconn and Pegatron have denied media report of plans to shift factories from China to Mexico for production of iPhone.

As per the Chinese mouthpiece, the Apple manufacturers do not plan to increase investment in Mexican factories and exports believe that a shift in the supply chain from China is costly and brings uncertainties.

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