Mexico Aims to Lead Global Semiconductor Production by 2025

Mexico aims to position itself as a key player in the semiconductor industry by 2025, according to Alejandro Franco, Founder and CEO of QSM Semiconductors. Achieving this ambition will require private-public collaboration with key institutions, investment in specialized talent, and advancements in technology to boost local chip production and strengthen the country's technology ecosystem.

Foxconn, a multinational electronics manufacturer, announced earlier this month that it is beginning the construction of its largest production facility in Mexico for Nvidia's GB200 chips, which are essential for Artificial Intelligence (AI). This move reinforces Mexico's strategic position in the semiconductor manufacturing, not only in the region but globally, as demand continues to grow exponentially amidst the AI boom.

Similarly, QSM Semiconductor invested US$12 million in 2024 to build a plant in Mexico, which is expected to begin operating in 2025  and generate around 160 jobs. This plant aims to produce chips for commonly used devices like televisions, washing machines and cars, eliminating the need to outsource production. This contrasts with QSM’s current system of designing its chips in Mexico and sending them to Asia for manufacturing, which incurs additional costs and limits local production  growth potential.

While these announcements are positive indicators of Mexico’s semiconductor industry potential, Franco, emphasized that the consolidation of the industry requires much more than institutional agreements. In addressing this need for consolidation, the executive highlighted the role of the National Metrology Center (CENAM) in ensuring that semiconductors produced in Mexico meet international quality standards and improve both the design and manufacturing processes. 

According to Franco, the exchange of advanced metrology practices, processes, and prototype designs will be critical for sustaining the development of the semiconductor industry, he told Expansion. Collaboration between private companies and governments, adhering to the highest international standards, will be essential for ensuring compliance and fostering innovation.

In response to the recent developments by Foxconn and QSM, Carlos Slim emphasized Mexico’s significant nearshoring potential, particularly in the production of semiconductors. According to Slim, ongoing geopolitical conflicts between the United States and China could create a vacuum in domestic chip production, positioning Mexico as a strategic point to supply both regional and international markets.

According to Franco, three key factors give Mexico a strategic advantage in this sector: its geographic location, a competitive workforce, and its network of strong international trade agreements. Together, these elements position Mexico as a strategic hub to develop a robust supply chain, from chip design to production and global distribution.

However, for Mexico to effectively scale its semiconductor industry, Franco underscored the need to train specialized talent in areas such as design, manufacturing, and metrology. In addition, access to venture capital, advanced technology and strategic advice will be critical to developing the industry’s capabilities.