Taiwan companies to invest more in Mexico amid global supply chain reshuffle

The Taiwan Electrical and Electronic Manufacturers' Association (TEEMA) and Mexico's National Auto Parts Industry (INA) signed a memorandum of understanding (MOU), highlighting Mexico as a potential advantage for Taiwanese companies in the global supply chain reshuffle. TEEMA stated that Mexico's inclusion in the United States-Mexico-Canada Agreement (USMCA) and its proximity to the US market make it an attractive destination. The virtual signing ceremony was followed by a forum discussing regional free trade agreements and investment in the US and Mexico. Taiwan aims to strengthen economic cooperation with the US, Canada, and Mexico to upgrade its supply chains.

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Frequently Asked Questions

1. Why are Taiwan companies investing more in Mexico?

Taiwan companies are looking to diversify their investment and supply chain strategies in response to the global supply chain reshuffle. Mexico offers strategic advantages such as proximity to the US market, which makes it an attractive destination for Taiwanese investors.

2. What industries are Taiwanese companies investing in within Mexico?

While the specific industries are not detailed in the provided links, typically, Taiwanese companies are known to invest in electronics, auto parts, and other manufacturing sectors which align with Mexico's growing industrial capabilities.

3. How does the global supply chain reshuffle impact China?

The reshuffle has not led to a complete displacement of China, but rather a diversification of supply chains. Countries like Vietnam and Mexico are receiving more Chinese imports and investments as companies adapt to geopolitical tensions and seek to mitigate risks by spreading their manufacturing bases.

4. Are other countries besides Mexico benefiting from this reshuffle?

Yes. According to one of the articles, countries such as Vietnam, Poland, and Morocco are also seeing benefits from the global supply chain changes, often due to US-China tensions and companies seeking new configurations for their global operations.

5. What is the American Institute in Taiwan's role in this investment shift?

While the specifics are not provided in the search results, the American Institute in Taiwan often acts as a de facto embassy and may facilitate discussions or provide support for Taiwanese companies looking to invest in Mexico, given the governmental functions it performs.

6. When are the investments expected to take place?

Timelines for these investments are not explicitly mentioned in the provided search results, but a continuous flow of investment can be inferred due to the ongoing global supply chain adjustments.

Please note that for more detailed information, you may need to access the full articles from the provided links.