Tech giant Hon Hai eyes the establishment of technology campuses in the United States and Mexico to circumvent escalating tariffs.
Foxconn Announces Plans for Technology Parks to Help Taiwanese Companies Bypass US Tariffs
In response to the upcoming 20% U.S. tariff on imports from Taiwan, set to take effect on August 7, 2025, Hon Hai Precision Industry Co. (Foxconn Technology Group) has announced plans to establish technology parks in the United States and Mexico. These parks aim to help Taiwanese manufacturers produce goods within these countries, thereby avoiding tariffs and reducing related costs while diversifying investment risks and enhancing production resilience.
The initial focus is on developing tech parks in Texas, with future projects planned for Mexico and potentially other developing countries. The Taiwanese Electrical and Electronic Manufacturers' Association (TEEMA), led by Foxconn chairman Young Liu, is working with government support programs and leveraging Foxconn’s influence to facilitate these science and technology parks, which are currently in planning and negotiation stages.
TEEMA's tech parks are intended to help about 25% of TEEMA's members affected by the tariffs, primarily manufacturers of heavy electrical machinery and similar products. This regionalization approach reflects Foxconn’s broader strategy to mitigate tariff pressures by localizing production in North America, aligning with U.S. goals to increase domestic manufacturing and job creation.
TEEMA's tech parks will not be limited to developed countries. In fact, the association plans to establish tech parks in key market regions, aligning with current trends in regional manufacturing development. Of the TEEMA member firms, a significant number of small and medium-sized enterprises (SMEs) are expected to be affected by the tariffs. TEEMA will work with the government to get it to introduce supporting measures to help member SMEs expand into overseas markets.
Hon Hai chairman Young Liu also serves as the chairman of TEEMA, highlighting the close relationship between the association and the influential tech company. The tariffs are expected to have a particularly significant impact on the heavy machinery and electronics sectors among TEEMA member firms.
This move by Foxconn is a strategic response to the upcoming US tariffs on Taiwanese goods, aimed at helping TEEMA member firms bypass these tariffs and continue their growth in the North American market.
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