Foxconn plans tech parks in U.S., Mexico amid high tariffs

Taipei, Aug. 18 (CNA) Foxconn intends to set up technology parks in the United States or Mexico to help Taiwanese companies bypass the 20 percent tariff the U.S. is set to impose on Taiwan, the company's chairman, Young Liu (劉揚偉), said Monday.

Also the chairman of the Taiwan Electrical and Electronic Manufacturers' Association (TEEMA), Liu said the tariffs will affect most member companies, with 25 percent expecting to face a major impact.

He said the tech parks, which could be established in the U.S., Mexico, or other developing countries, would offer TEEMA members the most favorable conditions negotiated either by the host country or by Foxconn (known in Taiwan as Hon Hai Precision Industry Co.).

Liu also said TEEMA would work closely with Taiwan's government in order to minimize the impact of the tariffs on Taiwan's small and medium-sized enterprises (SMEs).

TEEMA Secretary-General Lin Chuan-neng (林全能) said that of the 17 kinds of products manufactured by member firms, heavy machinery and electronics were the most impacted by the tariffs.

The association will work with the government to get it to introduce supporting measures to help member SMEs expand into overseas markets.

Citing Liu, Lin said TEEMA will work to establish tech parks in key market regions in line with current trends in regional manufacturing development.

Also on Monday, Liu confirmed that Foxconn will partner with Japan's SoftBank on a data center at its former electric vehicle factory in Ohio.

The project will be part of the US$500 billion "Stargate project" aimed at advancing U.S. artificial intelligence infrastructure.

Liu said the two companies will form a joint venture, with each holding a 50 percent stake.