Tim Cook at FoxconnSource: 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.

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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.