The Electronic Industry in Mexico

The electronic industry focuses on devices or components that process some kind of information. The industry is divided into five large segments: audio and video; computers and office; semiconductors; communications; and medical equipment and precision, measurement, control and optical instruments.

The products with the largest share in exports were computers, followed by flat screen TVs and mobile phones.

Mexico is particularly competitive in the consumer electronics segment, where it ranks among the top global exporters in some products.

In 2016, Mexico was ranked:

  • The first exporter of electronic products in Latin America.
  • The second exporter of flat screen TVs.
  • The second supplier of electronic products for United States.
  • The third exporter of computers.

In 2016, Mexico ranked as the 8th largest producer of electronics in the world and 1st in Latin America. According to estimates, production in Mexico's electronic industry was 77.5 billion dollars. That year, the electronic industsry accounted for approximately 1.5% of the country's GDP and 5.3% of its manufacturing GDP.

That same year, exports from the industry reached 71.8 billion dollars, the main destination being the United States, with an 85.6% share, followed by Canada, China, France, Netherlands and Germany.

Companies Established in Mexico

The major global electronics leaders have operations in Mexico because it enables them to serve the US and Canadian markets. Nine of the top ten transnational electronics manufacturing services (EMS) are established in Mexico. Samsung, LG, Toshiba, Foxconn, Flextronics and Intel are some of the global companies with presence in Mexico.

According to data from INEGI (National Statistics and Geography Institute), there are 910 economic units from the industry in Mexico, concentrated in Baja California, Chihuahua, Jalisco, Nuevo León, Sonora Tamaulipas, Estado de México and Aguascalientes. Moreover, the electronics manufacturing industry creates close to 279 thousand jobs in the country.

Attraction of Foreign Direct Investment

According to figures from the Secretariat of Economy, between 2010 and 2016 accumulated foreign direct investment in the electronic industry summed 6.8 billion dollars, concentrated mainly in the segment of audio and video equipment; communications equipment; computer equipment; measuring and controlling devices; and manufacturing and reproducing magnetic and optical media.

In 2016, foreign investment in this industry reached 392.7 million dollars, mainly from the United States, Japan and Sweden.

Strengths of the
Mexican Electronic Industry

Competitive Costs. Mexico stands out as the country with the lowest operation costs in the Americas, in the manufacturing of electronic components and equipment, according to a study by KPMG.

Talent. According to National Association of Universities and Institutions of Higher Education's data, 125 thousand engineering and technology students graduated annually from Mexican institutions.

Logistics Access. There are significant advantages due to Mexico's closeness to the North American market.

Talent. According to National Association of Universities and Institutions of Higher Education's data, 125 thousand engineering and technology students graduated annually from Mexican institutions.

Logistics Access. There are significant advantages due to Mexico's closeness to the North American market.

Competitive Costs. Mexico stands out as the country with the lowest operation costs in the Americas, in the manufacturing of electronic components and equipment, according to a study by KPMG.

 

Presence of main companies and suppliers

    Economic Units

    Foreign Direct Investment 2016
    (million dollars)

    Graduates from Engineering, Manufacturing
    and Construction, Electronic and Cibernetic,
    Engineering in Industrial Design and Technological
    Innovation, Innovation and Development, and
    Mechatronic Technician programs

    Download

     

    Success stories

    Siemens

    In 2017 the German company announced a 200 million dollar investment to attain of the following activities:

    • Adapt and implement new technologies in the industry to increase competitiveness;
    • Give advisement for the transformation of smart cities;
    • Contribute in the efficient generation and transportation of energy;
    • Apply dual education programs at its facilities;
    • Support on the decrease of CO2 emissions;
    • Boost local suppliers' development and the setting up of supply chains.

    Hisense

    On January 2017, the Chinese company announced an investment of 20 million dollars to expand its plant at Rosarito, Baja California. According to Hisense, the investment will generate more than 1,000 jobs and their operations will be increased by doing process such as plastic injection, metal stamping and the production of packaging materials for television manufacturing.

    Cisco

    On September 2016, the North American company announced a 4 billion dollar investment, during the 2016-2018 period. The expansion will allow to produce routers, servers, switches, TelePrescence screens and wireless access points, among others. It is estimated that 270 new jobs will be created.

    The Project involves the operation of other companies, which means the generation of 4,830 direct additional jobs, through Cisco's manufacturing partners.