Mexico, Taiwan Deepen Strategic Axis in Advanced Manufacturing

Summary: Mexico and Taiwan deepened a strategic manufacturing and technology partnership in 2025, with high-tech trade, nearshoring, and semiconductor cooperation reinforcing Mexico’s role in North American supply chains under USMCA. Taiwanese inputs, particularly integrated circuits, AI server components, and electronics, anchor Mexico’s export competitiveness, driving investment and cluster expansion in states such as Jalisco, Chihuahua and Baja California. The momentum, led by manufacturers including Foxconn, matters as Mexico seeks to move up the value chain amid energy, logistics and global tariff pressures.

Mexico and Taiwan strengthened their economic and industrial ties in 2025, consolidating a strategic partnership that has become central to the country’s advanced manufacturing and technology ecosystem. Driven by high-tech trade, nearshoring and semiconductor collaboration, the relationship continues to elevate Mexico’s role within global supply chains serving North America.

Bilateral trade between Mexico and Taiwan exceeded US$18 billion in 2024 and maintained momentum into 2025, positioning Taiwan as Mexico’s seventh-largest global trading partner and its fifth-largest supplier in Asia. The exchange underscores the growing integration between Taiwanese technology inputs and Mexico’s export-oriented manufacturing base.

The trade relationship is heavily concentrated in advanced electronics and digital infrastructure components, reinforcing Mexico’s export competitiveness rather than weakening it, industry experts say. Brenda Camargo, Senior Project Manager, Taiwan Trade Center, Mexico City (TAITRA), said 6.93% of Mexico’s total imports originate from Taiwan, primarily in high-technology components.

“The trade deficit is not a weakness; it reflects competitiveness,” Camargo said. “Taiwanese inputs are at the heart of the goods Mexico exports to North America.” Imports are concentrated in integrated circuits, artificial intelligence server components, and computer parts. Taiwan supplies more than 70% of critical inputs for Mexico’s technology sector, sustaining manufacturing operations in states such as Jalisco, Chihuahua, and Baja California.

Nearshoring Drives Taiwanese Expansion in Northern Mexico

Deepening trade flows have been accompanied by a growing physical presence of Taiwanese manufacturers, particularly in northern Mexico, where proximity to the US market has become a decisive advantage. Companies such as Foxconn, Quanta Computer, and Wistron have expanded operations under nearshoring strategies aimed at strengthening supply chain resilience and reducing geopolitical risk.

This shift has positioned Mexico as a key production platform for advanced electronics, AI hardware and automotive technology destined for the United States and Canada under the USMCA framework.

Beyond manufacturing scale, cooperation between Mexico and Taiwan has evolved toward technology transfer and workforce development, particularly in semiconductors and Industry 4.0 applications. A collaboration between the state of Chihuahua and Taiwan’s Industrial Technology Research Institute (ITRI) has focused on training Mexican engineers in semiconductor technologies and advanced manufacturing processes, strengthening local capabilities and moving the sector up the value chain.

Mexico now competes not only on cost, but also on trade access, specialized talent and established clusters in automotive and electronics manufacturing, Camargo said. Key challenges include energy infrastructure, logistics security and recent tariff adjustments affecting global trade.

Technology-Led Nearshoring to Lift Mexican Exports

Looking ahead, the integration of Taiwanese technology is expected to further boost Mexico’s export performance, particularly in electronics and AI-related manufacturing. Exports linked to Taiwanese technology are projected to grow 6.5% in 2026. “The goal is to move toward a model where Mexico does not only assemble, but also participates in design and high value-added electronics manufacturing services,” Camargo said. 

That transition is already visible in major investment announcements. Taiwan-based Hon Hai Precision Industry Co., better known as Foxconn, announced last year a US$168 million investment in its Mexican subsidiary as part of a global expansion focused on AI server production. The investment, made through a Singapore-based affiliate, increases Foxconn’s stake in FII AMC Mexico, according to a filing with the Taiwan Stock Exchange. It follows a US$241.2 million transaction completed in August 2024 through the same channel, reported MBN. 

Foxconn began operations in Mexico in 2004 and has since established 14 manufacturing plants across nine cities, including Ciudad Juárez, Monterrey and Guadalajara. The company employs more than 35,000 workers and engineers nationwide, with operations spanning advanced electronics, automotive manufacturing and information and communication technologies. Foxconn has designated Mexico as its regional manufacturing platform for North and South America, aiming to strengthen localized supply chains in partnership with the Mexican government and domestic suppliers.

Foxconn expects AI server sales to surpass NT$1 trillion (US$32.7 billion) this year, accounting for roughly half of its total server business. The company is also a key manufacturer of AI servers for Nvidia, benefiting from surging global demand.

Taiwanese Auto Supplier Opens US$16 Million Plant in Coahuila

Taiwanese investment has also extended into the automotive sector. Automotive supplier HCMF inaugurated a new US$16 million manufacturing plant in Parque Industrial Santa María, located in the state of Coahuila. The facility will produce sunroofs and sliding roofs for the North American market and is expected to generate both direct and indirect employment, strengthening the regional automotive supply chain, reported MBN. 

The inauguration was attended by Coahuila Governor Manolo Jiménez and other state and municipal officials. HCMF North America President Jeffrey Hsi said the new plant allows the company to meet growing demand while reinforcing its international footprint. State officials highlighted the investment as a signal of confidence in Coahuila’s industrial competitiveness and its role as a leading destination for foreign automotive manufacturing.