For years, Mexico has been the “safe harbor” for much of the server assembly that ends up in the United States. The combination of logistical proximity, industrial capacity, and the USMCA umbrella made the country the central convergence point: components produced in different regions were sent to Mexican plants for final assembly, then shipped to the U.S. market. But the landscape is shifting. Amid new tariff waves, regulatory uncertainty, and the AI hardware leap— increasingly dominated by accelerators and ASICs—, Taiwanese manufacturers and their EMS partners are restructuring their supply maps, with a clear trend: shifting focus toward ASEAN as a source of parts and subcomponents, without abandoning assembly in Mexico.
Mexico still leads, but the mix is shifting in favor of Taiwan (and against China)
U.S. trade data show why Mexico was—and remains—so relevant. From 2019 to 2024, Mexico maintained its lead as the origin of U.S. server imports, although its relative share has decreased. In 2019, it accounted for about 80.4% of the import origin; by 2024, that figure drops to 67.3%. Meanwhile, Taiwan has grown significantly: from 9.6% in 2019 to 25.8% in 2024. The biggest loser in this cycle is China, which falls below 1% in 2024. This redistribution coincides with an overall increase in total import volume: the value of U.S. server imports rises from $31.36 billion to $61.76 billion between 2019 and 2024.
Behind these percentages is an operational phenomenon: production is fragmenting. Not everything is “made” in Mexico; often, Mexico handles the assembly, while printed circuit boards, network modules, thermal components, cabling, mechanical parts, or certain sub-assemblies are produced upstream in other regions before converging at the final line.
Tariff pressure drives supplier diversification: why ASEAN is gaining weight
In 2025 and 2026, tariff debates returned to the center of industrial strategy. The effect is not just the tariffs themselves, but also the uncertainty: origin rules, traceability regulations, “sensitive” components, and political pressure to increase regional or alliance content.
Within this context, several market analyses suggest that major Taiwanese assemblers—with a footprint in Mexico—are adjusting supply chains to reduce exposure to shocks: shifting some sourcing to ASEAN countries can provide options in costs, capacity, and perceived “geopolitical risk” for certain components, without abruptly dismantling the final Mexican assembly scheme.
This shift coexists with another parallel movement: more direct investments in the U.S. for high-value AI-related products, as a response to trade volatility. For example, Taiwanese investments in Texas have been reported to strengthen AI-oriented server capacity, aiming to balance dependence on Mexico and hedge tariff uncertainties.
The “ASIC boom” reshuffles priorities: more value per server, more demand for parts
The second structural force is technological. The server market is experiencing acceleration driven by Artificial Intelligence, not only through GPUs: the prominence of ASICs (custom accelerators) and platforms designed for inference and training with higher energy, networking, and storage demands is increasing.
This practically creates two pressures:
- Increased demand for critical components (power supplies, thermal management, interconnection, high-density PCBs, etc.).
- Greater sensitivity to part delays: a minor bottleneck can slow down the release of complete systems.
Sector research indicates that the expansion of language models and renewed tariff policies are reordering the global server supply chain, especially impacting EMS providers. Several market reports also forecast that demand for accelerators and specialized architectures will continue to strain capacities through 2026, prompting companies to secure alternative suppliers and diversify regions.
Table: What changes when Mexico handles assembly and ASEAN provides more
| Supply Chain Layer | Trend | Main Reason | Typical Operational Risk |
|---|---|---|---|
| Final Assembly (Mexico) | Remains a hub | Proximity to the U.S., industrial capacity, and logistics | Dependence on origin rules / tariff changes |
| Components and Sub-assemblies (ASEAN) | Increasing importance | Diversification, capacity, cost, and flexibility | Greater coordination complexity and quality control challenges |
| Onshore Production (U.S.) | Growing in AI | Reducing regulatory risk and bringing manufacturing closer to customers | Labor costs and industrial ramp-up |
Deeper insight: it’s not abandonment of Mexico, but an anti-shock strategy
The most realistic picture for 2026 is not an exodus but a hybrid pattern: Mexico continues as the main assembly point, while the upstream chain becomes more resilient and “multi-origin”. Concurrently, a portion of more strategic hardware—especially related to AI—is investing further in U.S. soil to improve resilience, meet customer requirements, and reduce policy change exposure.
The result is a more complex supply chain, but also one better prepared for a world where server competitiveness is no longer based solely on unit costs, but on supply continuity and the ability to scale during demand cycles.
Frequently Asked Questions
Why is Mexico so important in server assembly for the U.S.?
Because it hosts a significant portion of final server assembly destined for the American market, supported by logistics, industrial scale, and the framework of the USMCA. Nonetheless, the relative share of Mexico has decreased in recent years as Taiwan’s share in imports has grown.
What does it mean that the “supply chain is shifting to ASEAN”?
It means increasing the sourcing of parts and subassemblies from Southeast Asian countries (ASEAN) to diversify risks, improve availability, and reduce exposure to certain regulatory or tariff changes, while maintaining final assembly where operationally makes most sense.
How is the rise of ASICs related to supply chain changes?
AI servers with accelerators (including ASICs) increase platform complexity (power, thermal, networking, PCBs, and critical components). This dependence makes diversifying suppliers more valuable to prevent production stoppages.
Is server manufacturing moving to the U.S.?
Investments in U.S. capacity are growing, especially linked to AI, as a resilience strategy against trade uncertainty and to bring production closer to large customers.