Electronics

Mexico’s Electronic Market and Industry

The neighbouring potential costumers (USA, Canada, Central and South America) and the local costumers make Mexico an ideal manufacturing location. Mexico’s attractiveness lies in its ability to offer lower operating costs than the United States and Canada and human resources and experience cultivated in the automotive and the electrical/electronics industry, as well as geographical proximity.

Both, political and economic stability have made Mexico an attractive location for investment, free-trade agreements and skilled labour in combination with government incentives like “Maquiladora” and “In Bound” have led Mexico to become a strong base for many Electrical Appliances manufacturers (Motorola, IBM, Sam-sung, Olivetti, Philips, Panasonic, Sony, HP and others).

Mexico’s exports of electronic products have considerably increased by almost 20 percent. In 2006, electronics exports reached US$ 54.7 billion, almost a 19.3 percent increase from 2005. The main manufacturing sub-sectors continued to be information technologies (33%) and audio and video (30%). Mexico has two main centers for the electronic industry: Tijuana, Baja California and Guadalajara, Jalisco (Source US Commercial Service).

Mexico Electronics Industry 2008 Growing Expectations


Growing consumer base as the number of young Mexicans is on the rise The increasing number of young people in the Mexican population presents a great opportunity for consumer electronics manufacturers. During the 2000-2006 period the number of people aged 18-35 years rose 5% and further growth 4% is expected between 2006 and 2011, by which time there will be some 35.7 million people in this age group. This will likely lead to a continued rise in the number of households and in turn to greater demand for basic consumer electronics products, such as TVs.

Mexico has many different projects but perhaps the most important project in the coming years, is the building of the first industrial park in Latin America specialized in nano-components, and located in Mexicali, Baja California: this park would cover an area of 4 thousand hectares, the name of the project is: “Silicon Border Development Science Park,” and will be an extension of Silicon Valley in California. In the first phase of the project it will be invested nearly $ 120 million; over 15 years, and are expected investments of up to $ 400 million. Nearly 100 companies specializing in high technology, have shown their interest to participate in the park, companies. In addition, it plans to open a new border crossing, because this park is two hours on Silicon Valley.

Advantages for Investors in Mexico :

Also, Mexico has been developing different support programs. One of them is the National Program for the Competitiveness of the Electronics Industry and High Technology which includes issues such as:

If you wish to know more detailed information about this sector, do not hesitate to contact us.