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.
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.
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.
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 LeÃ³n, Sonora Tamaulipas, Estado de MÃ©xico and Aguascalientes. Moreover, the electronics manufacturing industry creates close to 279 thousand jobs in the country.
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.
•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.
•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.
•Logistics Access. There are significant advantages due to Mexico's closeness to the North American market.