According to media reports, server manufacturers are busy preparing for the possibility of Trump fulfilling his promise to impose a 25% tariff on all goods imported from Mexico. Mexico has become a key manufacturing center for major enterprise suppliers such as NVIDIA, AMD, and Intel. Some companies are increasing their production capacity in the United States, while others have stated that they are suspending their construction plans in Mexico.
In the past few years, Mexico has benefited from the diversification of its supply chain, its geographical advantage near the United States, and its large workforce. Foxconn, Quanta Computer, Wistron, Inventec, and Pegatron have all established production capabilities in Mexico in recent years, either producing electric vehicle systems or servers for Nvidia, Intel, and AMD. However, Trump's upcoming return to the White House puts Mexico's current and planned technology investments at risk.
Hours after Trump's latest tariff remarks, an executive from Intel and Nvidia server suppliers said, "We quickly began calculating how many components we may need to produce in the United States to meet the requirements of the country of origin. A potential solution could be to continue producing some mechanical components in Mexico while shipping server motherboards and final rack assemblies containing the most expensive graphics processing units to the United States
An executive from another major AI server supplier, NVIDIA, Google, and Amazon, stated that the company has temporarily postponed making new investment decisions in Mexico. In addition, the server manufacturer that is building a new factory in Mexico said that the investment will be "phased" and his company is considering waiting until Trump takes office and announces tariff details before starting the new phase.
