Will Mexico’s new tariffs dent Foxconn’s plans? Hon Hai says exposure is limited, mitigation is ready, and expansion across Taiwan and Mexico remains on track.
Hon Hai Precision Industry, better known as Foxconn, announced on Friday, 12 December 2025, that new Mexican tariffs would have only a limited effect on its business, as the measures do not target its core information and communications technology operations.
The Taiwanese electronics manufacturer said the products affected by the tariff increase are essentially outside its main ICT (information, communication, and technology) portfolio.
As a result, overall exposure remains manageable. Rotating chief executive Kathy Yang said the company had anticipated policy changes and implemented mitigation measures.
Mexico’s legislature has approved a plan to raise import tariffs on light vehicles to as much as 50%. The move applies to products from China and countries without a trade agreement with Mexico. Previous rates ranged between 15% and 20%. The policy could touch parts of Hon Hai’s automotive electronics activities, but the company said the impact would be modest.
Yang said Hon Hai has introduced several duty-deferral arrangements in Mexico to mitigate potential impacts. She added that the group is accustomed to operating in a shifting political and regulatory environment. This, she said, gives it the resilience to respond without major disruption.
The comments were made on the sidelines of a contract-signing ceremony in Kaohsiung, Taiwan. Hon Hai is developing a new headquarters near the under-construction MRT Y15 station in the Asia New Bay Area. The land development project carries an investment of NT$15.9 billion. Total investment by the group in Kaohsiung is set to exceed NT$25 billion.
Construction is scheduled to start in 2027 and finish in 2033. The project will include a residential tower and a mixed-use complex. The latter will house R&D offices, retail outlets and a shopping centre. The development is expected to create about 2000 jobs.
Once completed, the site will host teams working on smart city solutions, software, batteries, energy storage, electric vehicles and artificial intelligence.
Separately, Hon Hai has begun a smart city collaboration with Mexico’s Sonora state, following an agreement signed in February. The company plans to adapt its Kaohsiung model for Sonora once the concept matures.
Hon Hai is also partnering with NVIDIA on a large-scale supercomputing centre in Kaohsiung, with completion targeted for next year.
