Several US-based tech firms are reportedly urging hardware manufacturers to move their operations to Mexico to compete with China's hardware industry.

James Huang, chairman of the Taiwan External Trade Development Council, told The Wall Street Journal that US companies are looking to take advantage of the US-Mexico-Canada agreement to reduce reliance on China's product.

At least billions of dollars have already been moved to encourage more tech manufacturers to expand their operations in the West.

Huang said the North American nations are hoping "to replace products imported from Asia as much as possible."

Taiwan's Foxconn Expands Business Venture to Mexico

Among the companies targeted for the nearshoring is Taiwan-based Foxconn, manufacturer for most components used in iPhones.

This is in addition to materials it provides to tech giants like Amazon, Google, and NVIDIA for their AI products.

Foxconn has earlier been reported of acquiring land in Mexico's Jalisco state and investing $690 million in the country.

Also Read: US is Urging Allies to Tighten Regulations Against China's Access to Chip Tech

US Moves to Ramp Hardware Productions to Compete with China

The move to urge chip manufacturers shift production processes in Western countries mark another move from the US in its current economic dispute against China.

The US has already barred the Asian superpower access from its advanced AI chips, as well as reduce its tech imports from the country.

Since then, the current administration has ramped up on reviving the tech industry in the US, including pledges worth billions of dollars to Intel.

Insider reports also indicate that the White House has been calling for allied countries to further restrict China's access to their technology, primarily through Europe.

The efforts came after China has been noted to still acquire advanced AI chips, including those from NVIDIA, despite the US sanctions on the country.

Related Article: NVIDIA Chips Still Being Sold to China Despite US Ban