Mexico’s Bajio and northern region seeks to boost the chip industry

MEXICO - The semiconductor industry is one of the key sectors for the government of President Claudia Sheinbaum. According to Plan Mexico, the goal for 2030 is to double local supply in chip manufacturing, as well as to reach US$10 billion in investment, and the north of the country is a key area to reach these goals.

Initially, Plan Mexico considers the northern border area and the northwest of the country as two of the main industrial parks with the greatest impact on the sector, and this decision is no coincidence, as this is one of the most developed regions in terms of chip infrastructure.

Although the document emphasizes that the polygons are not limiting and more areas could be considered, the reality is that the north of the country already has the presence of multiple companies focused on the segment of discrete semiconductors and electronic integrated circuits, known collectively as SC-Core.

In this sense, the north and the Bajío are two of the most promising areas in Mexico in the SC-Core segment, according to the United States-Mexico Foundation for Science (Fumec) and the U.S. Agency for International Development.

According to the studies of these institutions, most of the investment is concentrated in Baja California, the main electronics manufacturing center in the country, followed by Jalisco, Chihuahua, Nuevo Leon, Sonora, Coahuila and Tamaulipas.

Within these states are distributed all the processes of the semiconductor supply chain available in the country, i.e., they have networks of clean rooms, design, manufacturing, assembly, packaging and testing, in addition to academia focused on the sector and research and development.

According to figures from the document Nearshoring of semiconductors in Mexico, based on the National Statistical Directory of Economic Units, there are 326 facilities related to the semiconductor segment in the border area.

Some of the most important companies located in this area include Foxconn and Qualcomm in Baja California; Amphenol, in Sonora; Foxconn, in Chihuahua; Celestica, in Coahuila; Lenovo, in Nuevo Leon; and LG, in Tamaulipas.

“The proximity of the Northern Border to the United States offers a geographic advantage that can be leveraged to participate in the semiconductor supply chain. This advantage facilitates the movement of people quickly and affordably, which serves as a basis for binational collaboration,” the document explains.

An example of this collaboration has been shown between Arizona State University, along with Sonora and Nuevo Leon, entities that have developed specialized chip programs to prepare young people in this industry.