Monday, May 20, 2024

Taiwanese semiconductor manufacturers visit Mexico

A group of 20 Taiwanese semiconductor manufacturers is visiting Mexico to evaluate investment potential, Mexico’s Economy Ministry (SE) said on Sunday. 

In addition to manufacturers, three associations and a research center for semiconductors and printed circuit boards (PCBs) are attending the gathering, held in coordination with the SE and the Business Coordinating Council (CCE).

Semiconductor chips
The global semiconductor industry, which requires extremely specialist production methods, is estimated to be worth US $1 trillion by 2023, according to Deloitte. (Vishnu Mohanan/Unsplash)

Major companies from Taiwan in the delegation include Foxconn — which manufactures Apple devices as well as the video game platforms Playstation and Xbox One — Unimicron, Invetec and Pegatron are participating. 

The SE hopes to demonstrate Mexico’s competitive advantages in the sector.

“Factors such as governance and macroeconomic stability, [Mexico’s] geographical position, its network of trade agreements and the young and specialized labor force are managing to attract new investments from large companies coming to Mexico,” the SE said in a statement

“To measure the relevance of the companies visiting us today, it is enough to say that any cell phone, medical device, car, television or household appliance has components manufactured by one of these companies.” 

Quanta Notebooks
Quanta became one of the latest Asian firms to invest in Mexico in 2023, pledging a new factory in Nuevo León as part of a US $1 billion investment. (Samuel García/Twitter)

The semiconductor industry represents a global market of US $580 billion, and the PCB market US $82 billion. The parts are essential for the manufacture of electronics and vehicles. 

Over the course of the visit, the Taiwanese delegation will meet with various state governors, including Julio Menchaca of Hidalgo and Sergio Salomón of Puebla. The group will also learn about government incentives provided to companies establishing operations in the Isthmus of Tehuantepec, a new industrial corridor in the country’s south. 

“This plan represents a turning point regarding the role our country plays in the global markets, and its consolidation will make Mexico a strategic and indispensable player in the production of advanced technology. In the same way, it will bring well-paying and skilled jobs to the country,” the SE said. 

Over the last year, Mexico has been accelerating the development of its semiconductor and PCB industry in the midst of a global shortage, offering a series of incentives for companies seeking to relocate to Mexico. 

A study carried out by BBVA Bank concluded that Mexico is facing a “historic opportunity” in the industry, which until now has been heavily dominated by Taiwan, which currently manufactures around 60% of the global supply. 

Supply chain disruptions and other geopolitical factors have caused manufacturers to look into moving their operations closer to consumers, a trend called nearshoring. Mexico has been collaborating with the U.S. to encourage companies to shift from Asia to Mexico. 

Last month, Nuevo León Governor Samuel Garcia met with Taiwanese manufacturers after Quanta Computers announced plans to invest US $1 billion in the northern border state. 

With reports from El Economista, Expansión and La Jornada

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