News Make AI servers in Mexico, US tech firms tell Taiwanese manufacturers

[Admin]

US tech giants are keen for their Taiwanese manufacturing partners to set up in Mexico. The idea has proven attractive to giants like Foxconn and others, says the report, and geopolitics aside, it looks like a savvy move to have manufacturing that much closer and to benefit from the attractive USMCA free trade agreement.

Make AI servers in Mexico, US tech firms tell Taiwanese manufacturers
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[peachpuff]

 

[vanadiel007]

All great, but once Mexico becomes a major hub they will put trade sanctions in against them.

 

[bit_user]

All great, but once Mexico becomes a major hub they will put trade sanctions in against them.

The USMCA has a 16 year term. Upon expiration, it could be renegotiated.

Regarding other concerns, it'd be worth reading through the provisions:

https://en.wikipedia.org/wiki/United_States–Mexico–Canada_Agreement#Provisions
​

It seems there was some thought given to the potential of having one country (presumably Mexico) being used as a transit point for goods from elsewhere (e.g. China). Probably a better situation than any agreements we have in place with countries like Vietnam, if that's what you're concerned about.

 

[Notton]

It doesn't say where they plan to build these.
IMO, if they piggyback this on the Tehuantepec project, it would become a massive boon for Mexico's economy.

 

[Co BIY]

I'm surprised at the large reduction in percentage of Chinese imports to the US over eight years.

 

[williamcll]

How do they know the Mexican firms aren't actually Chinese?

 

[bit_user]

How do they know the Mexican firms aren't actually Chinese?

I assume Chinese investors can own businesses in Mexico, just like they can own them in the USA, but some restrictions likely apply.

The trade deals aren't about who owns the businesses, but about movement & exchange of goods, services, workers, etc.

 

[Co BIY]

I assume Chinese investors can own businesses in Mexico, just like they can own them in the USA, but some restrictions likely apply.

The trade deals aren't about who owns the businesses, but about movement & exchange of goods, services, workers, etc.

OTOH the tick-tock deal is all about the ownership.

 

[bit_user]

OTOH the tick-tock deal is all about the ownership.

Not because of who gets the revenue, which would normally be the concern about ownership. It's a matter of the algorithms used and access to the data about users and their activity.

To understand why that's an issue, you should probably do a bit of reading on Cambridge Analytica's claims about their psychometric profiling capabilities, prior to 2016. With the power of modern AI, such potential is now even further amplified.