Foxconn plans to launch overseas tech parks as part of its efforts to help Taiwanese firms withstand rising US trade barriers, Taipei Times reported.
Hon Hai Precision Industry Co, also known as Foxconn Technology Group, is preparing to establish technology parks in the United States and Mexico. The move comes in response to Washington’s 20% tariff on imports from Taiwan.
The initiative, announced yesterday by chairman Young Liu, aims to ease the burden on Taiwanese exporters, particularly small and medium-sized enterprises (SMEs).
Liu, who also chairs the Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA), emphasised that the tariffs would have a significant impact on most TEEMA members. About one quarter of them expect a major impact on operations.
By creating new industrial zones abroad, Hon Hai hopes to establish favourable conditions for Taiwanese companies, either through local incentives from host countries or through negotiated terms arranged by the company itself.
The parks are envisioned as hubs combining manufacturing, logistics, and supply chain facilities to reduce costs and streamline access to the North American market. Liu added that the initiative could extend beyond the US and Mexico to other developing economies, depending on business opportunities and regional manufacturing trends.
TEEMA secretary-general Lin Chuan-neng said that the products most vulnerable to tariffs include heavy machinery and electronics, which represent a substantial share of the association’s output. Lin noted that, of the 17 product categories manufactured by TEEMA’s members, these two sectors face the sharpest exposure.
In addition to overseas expansion, TEEMA intends to work closely with Taiwan’s government. Possible policies include financial assistance for SMEs entering new markets and regulatory adjustments to ease cross-border investment.
Both Hon Hai and TEEMA stressed that cooperation between industry and government would be critical to mitigating the trade shock and sustaining Taiwan’s role in global supply chains.
The US tariffs are expected to take effect later this year, raising concerns among Taiwan’s exporters about higher costs and weaker competitiveness in a vital overseas market.
