Foxconn is reportedly looking to Mexico for its new iPhone factory

Tim Cook at Foxconn
Tim Cook at Foxconn (Image credit: Apple)

What you need to know

  • Foxconn is said to be considering opening a new iPhone factory in Mexico.
  • Pegatron is also considering a factory in the country.
  • Luxshare might also be heading to Mexico.

Apple partner and iPhone assembler Foxconn is reportedly considering opening a new factory in Mexico, with Pegatron also mulling a factory of its own.

Reports by El Economista and 9to5Mac cite two sources who say that Foxconn has Mexican plans, although it isn't thought that Apple has had a part to play.

According to two of the sources, Foxconn plans to use the facility to manufacture Apple's iPhone. However, there were still no signs of Apple's direct participation in the plan, according to one source.

If Foxconn does go Mexican it's thought that a decision will be made by the end of this year, although it will take some time for the wheels to get into motion. The same goes for Pegatron, although there is less certainty over the company's plans.

As for Luxshare, the report notes that it is also thinking of making the move to Mexico. Again, there's no information as to what a Mexican Luxshare factory would be responsible for producing, but its other locations produce AirPods right now.

China's Luxshare Precision Industry Co is also considering building a facility in Mexico this year to offset the tariff war between the world's two largest economies, the two sources said.

Apple and its suppliers have been looking for ways to reduce their reliance on China for several reasons. Not least, the almost constant trade tensions between the United States – Apple's home country – and Chinese governments.

Oliver Haslam

Oliver Haslam has written about Apple and the wider technology business for more than a decade with bylines on How-To Geek, PC Mag, iDownloadBlog, and many more. He has also been published in print for Macworld, including cover stories. At iMore, Oliver is involved in daily news coverage and, not being short of opinions, has been known to 'explain' those thoughts in more detail, too.

Having grown up using PCs and spending far too much money on graphics card and flashy RAM, Oliver switched to the Mac with a G5 iMac and hasn't looked back. Since then he's seen the growth of the smartphone world, backed by iPhone, and new product categories come and go. Current expertise includes iOS, macOS, streaming services, and pretty much anything that has a battery or plugs into a wall. Oliver also covers mobile gaming for iMore, with Apple Arcade a particular focus. He's been gaming since the Atari 2600 days and still struggles to comprehend the fact he can play console quality titles on his pocket computer.