The Hon Hai Technology Group, also known as Foxconn, announced a new strategic partnership with the Mexican state of Chihuahua.
The electronics manufacturing giant and Mexico’s largest state by land area sealed the deal in late August, while Foxconn published a press release on Sept. 5. The agreement includes cooperation on talent cultivation and technology development with a focus on sustainable energy.
In late 2022 and early 2023, Foxconn increased its efforts to secure new business partnerships in Mexico. This was done in an effort to balance against increasing risks in the Chinese market and nearshore manufacturing to cater to the emerging electronic vehicles market in North America.
Foxconn has already invested US$500 million (NT$16 billion) into Chihuahua and maintains facilities in Juarez near the U.S. border. The company also has plans to establish two more plants in the state, which will provide work for an estimated 5,000 employees, reported Mexico News Daily.
According to the press release, the strategic partnership with Chihuahua’s state government will focus on “optimizing supply chains, enhancing infrastructure, and fostering an environment conducive to growth and innovation.” The company also hopes to develop programs with the state to develop local talent that will help to establish the region as a hub for cutting-edge manufacturing.
Lastly, Foxconn hopes the new partnership will help to “enhance energy efficiency, explore renewable energy courses, and support sustainable power solutions.”
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Source: Taiwan News