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Excellence Opto builds Mexico plant to navigate tariff risks

, Taipei
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Credit: DIGITIMES

Excellence Optronics Inc (EOI) has begun constructing a new automotive LED module factory in Querétaro, Mexico. This expansion strengthens EOI's global supply chain, with the facility scheduled for completion by September 2025 and operations beginning in 2026, improving service capabilities in Mexico, Central America, and Europe.

According to EOI's general manager, Fanny Huang, the company aims to strengthen strategic partnerships with leading global automotive lighting manufacturers amid changing market conditions. The new factory has secured long-term orders for LED automotive lighting modules and is expanding collaborations with clients.

The facility's strategic location provides logistical benefits that reduce costs in inventory, transportation, and packaging. It also contributes to sustainability efforts by lowering carbon emissions and improving supply chain efficiency. Furthermore, as the products won't be exported to the US, they will avoid President Trump's proposed 25% tariff on Mexican imports.

Allan Kuo, EOI's managing director of global sales, revealed that about two million North American vehicles use EOI's LED lighting modules yearly. By 2025, over 300 containers are expected to be shipped to North America from abroad. With projected business growth, EOI's new factory in Mexico could become its largest production base in five to seven years, generating approximately 800 jobs.

At the groundbreaking ceremony, Marco Antonio Del Prete Tercero, Querétaro's Secretary of Sustainable Development, and Carlos, chairman of Frisa Construction Group, emphasized the symbolic importance of EOI's presence in the region, promising full support and preferential services for its future operations.

Article translated by Jingyue Hsiao