Amidst an ongoing chip war between the US and China, investments in Mexico are making the country a hot destination for hardware manufacturing in the AI space. At the request of AI companies in the US, Taiwan-based companies are ramping up production efforts in Mexico, the Wall Street Journal reported March 31. Three’s a crowd. A 2020 free-trade agreement between the US, Mexico, and Canada has brought in billions from manufacturing companies “aiming to move operations from China to Mexico,” the Journal also reported. The recent nearshoring efforts and investments into Mexico are beneficial to Taiwan, the US, and Mexico, according to Ryan Yonk, coauthor of The China Dilemma, who told IT Brew that “labor costs” and the “relative closeness to the United States,” in both a physical and governmental sense, make the country an attractive spot. “A major part of why places like Mexico or China are attractive is that…while not the lowest labor cost that you can find in the world, [they offer] a combination of skilled workers and labor costs that are well below the manufacturing costs in the US,” he said. “Couple that with the regulatory environment and climate and suddenly, things are a lot more interesting for a Taiwanese company to operate [in Mexico].” Keep reading here.—AF Do you work in IT or have information about your IT department you want to share? Email [email protected]. |