Apple supply partner Foxconn may open a factory to build iPhones in Mexico

Apple itself has already started to branch out as far as its plans to manufacturer iPhones around the globe is concerned. Now, Foxconn and other supply partners are eyeing Mexico as another potential manufacturing location.

The Taiwan-based Apple supply partners Foxconn and Pegatron are reportedly looking to expand their manufacturing footprint into Mexico, according to a report from Reuters. Both companies are looking to build new factories, with at least one supposedly geared towards iPhone production on Foxconn’s end. The report indicates that the current “trade war” between China and the United States, along with pressures applied to companies due to the ongoing coronavirus pandemic, has forced these suppliers to adjust their plans ro expansion.

The plans could usher in billions of dollars in badly needed fresh investments over the next few years for Latin America’s second-largest economy, which is primed for its worst recession since the 1930s Great Depression.

However, while both Foxconn and Pegatron are major supply partners for Apple, these companies also work with other smartphone manufacturers. That means it’s possible both suppliers will not work with Apple directly as it relates to these future factories in Mexico. That being said, the report does suggest Foxconn will be building iPhones at its new factory in Mexico.

Apple’s direct involvement in the plans remains unknown, though. And a final decision on Foxconn’s plans regarding an expansion in Mexico could be finalized by the end of 2020.

According to two of the sources, Foxconn has plans to use the factory to make Apple iPhones. However, one of the sources said, there had been no sign of Apple’s direct involvement in the plan yet.

Foxconn is likely to make a final decision on a new factory later this year, and work will commence after that, the two people said, adding there was no certainty the company would stick to the plan.

If this all does happen, there’s no word on when construction would begin, or when employees would even be able to step foot into the factories.