Mexico emerges as cornerstone of AI supply chain to US

By the Editorial Team · Monday, August 3, 2026

Mexico now supplies 40 percent of U.S. computer server imports, becoming a key hub for AI hardware production through expanded Taiwanese manufacturing operations. This shift has boosted Mexico’s exports to record levels and positioned the country as a critical player in the North American AI supply chain despite economic and trade uncertainties.

Mexico has emerged as a significant player in the supply chain supporting the artificial intelligence (AI) boom in the United States, supplying 40 percent of US imports of computer servers this year. These servers, essential components in data centers that power AI technologies, have become Mexico’s leading export to the US, surpassing automotive products that previously dominated the trade relationship.

Taiwanese manufacturers have been instrumental in this shift, expanding their operations in Mexico to assemble servers. This sector has grown rapidly, with Mexico becoming the second-largest supplier of enterprise servers to the US so far in 2024, generating $46.9 billion in sales. Although Taiwan remains the largest provider with $53.5 billion in sales, Mexico overtook it as the top monthly exporter in May.

This development has bolstered Mexico’s export figures, contributing to record levels of goods shipped between January and May. Server and related hardware exports accounted for nearly 20 percent of the country’s $317 billion total exports during this period, more than doubling compared to the same timeframe last year. Meanwhile, Taiwan has risen to become Mexico’s third-largest trading partner, climbing from eighth place in 2022. Since 2020, Taiwanese firms have invested over $1.6 billion in Mexican factories, attracted by Mexico’s geographic proximity to the US and tariff-free access to major American technology companies that are heavily investing in data center infrastructure.

Experts highlight Mexico’s crucial role in the AI economy. Jesse Rogers, head of Latin America economics at Moody’s Analytics, described the country as “a new frontier of collaboration and even dependency” for AI server production.

Ciudad Juárez, located across the Rio Grande from El Paso, Texas, has become a central hub for this industry, leveraging its established Taiwanese electronics manufacturing base. New assembly lines in the city receive components shipped from Asia, building AI servers which can weigh more than two tonnes and are transported by truck into the US market. Kun Lin Yang, executive director for Mexico at Taiwanese electronics maker Pegatron, noted the strategic importance of the El Paso-Ciudad Juárez location, citing its central position in North America that facilitates rapid delivery of finished products.

This expansion in high-tech manufacturing has provided support to Mexico’s economy, which has struggled in recent years. GDP growth slowed to 0.6 percent last year, down from a pre-pandemic average of 1.6 percent. Nevertheless, the increase in exports, particularly in AI-related hardware, has offered a positive counterbalance to this slowdown.

Mexico faces some headwinds, including ongoing trade uncertainties. The US government under President Donald Trump opted not to extend the US-Mexico-Canada Agreement (USMCA) long-term last month as part of efforts to curb Chinese influence in the region. Additionally, domestic policy changes under President Claudia Sheinbaum, such as reforms allowing the election of judges, have raised concerns among investors. The World Bank projects Mexico’s economy to grow by 1.3 percent this year, below the growth rates of comparable countries in the region.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.