Jalisco Hosts 70% of Mexico's Semiconductor Industry

Jalisco concentrates 70% of the semiconductor companies in Mexico, positioning itself as a leader in the sector, said Enrique Alfaro, Governor of Jalisco, in a recent meeting with the National Council of the Maquiladora and Manufacturing Export Industry (INDEX).

In early April, as reported by Mexico Business News (MBN), US artificial intelligence (AI) development companies announced plans to move AI-related hardware production to Mexico in response to geopolitical tensions and logistical challenges within the US-China semiconductor trade. 

This move aims to leverage the US-Mexico-Canada Agreement (USMCA) to reduce dependence on China, diversify supply chains, and establish a new base of operations near important markets.

The semiconductor industry is a key driver for technological and economic development due to its role as a catalyst for innovation, economic growth and enhanced business competition, according to various specialized sources. Leading semiconductor-producing regions tend to attract foreign investment, strengthening their position in global markets and fostering the construction of advanced technological infrastructure that benefits multiple industrial sectors, according to MBN.

With its significant concentration of semiconductor companies, Jalisco is well-positioned to lead innovation and attract both domestic and foreign investment, said Enrique Alfaro.

This focus was also reflected during the presentation of the new Technological Education System, which will enter into force in June and aims to increase the number of students in technological education from a current enrollment of 15,000 students to 40,000 by the end of the year.

In addition, Jalisco already accounts for 23% of all engineers and related professionals developing software in Mexico, highlighting the specialized labor force available in the region. This local talent is critical to sustaining and boosting economic growth, as well as driving innovation in the semiconductor industry.

"In Jalisco we were able to outline a clear path towards where to walk, we identified the central issues, particularly in the challenge of talent training, today I can tell you that that purpose is being achieved," said Enrique Alfaro. "It is a very important bet and is part of this comprehensive approach to talent training as a fundamental axis for the consolidation of Jalisco Tech Hub Act in our state."

The Jalisco Tech Hub Act, according to the state's website, is a new generation public policy promoted by the triple helix to make our state a leader in development, reconversion, attraction and retention of talent through a decisive boost and incentives to the innovation and high technology ecosystem, which seeks to consolidate the state as a leading technology hub in Mexico. Currently, according to Informador, this strategy is linked to the development of industrial parks and the modernization and expansion of the Guadalajara International Airport. 

Guillermo del Río, president, INDEX Occident, highlighted the importance of government support and collaboration with the private sector to drive economic growth. He recognized Jalisco's efforts in pandemic management, job generation and foreign investment.