Mexico Boosts Semiconductor Industry; Sonora Leads the Charge

Sonora’s government, in collaboration with federal authorities, is deploying multiple strategies to attract investment and develop its semiconductor sector, said President Claudia Sheinbaum.  These efforts capitalize on the state’s strengths and involve collaborations with academic institutions and the commercial relationship with Arizona.

"We are working for Mexico to not only participate, but actively compete in the global semiconductor industry, taking advantage of our geographic advantages and national talent," said Sheinbaum during her morning conference on Jan. 20.

Collaborations with institutions such as CINVESTAV, INAOE, UNAM, and Tecnológico Nacional de México are central to boost scientific research in semiconductors, adds Sheinbaum, according to Reporte Indigo. These alliances enable the development of applied technologies and their transfer to the industrial sector.

Global demand for semiconductors, essential for electronic devices and vehicles, has driven a reconfiguration of supply chains. After disruptions caused by the pandemic, countries such as Mexico are seeking to position themselves in this strategic industry. According to the Inter-American Development Bank, proximity to key markets such as the United States and the availability of skilled labor place Mexico in a favorable position.

With a 0.57% share of global semiconductor exports through 2022, the country has ample room for growth. States such as Sonora and Jalisco are leading initiatives to develop infrastructure and strengthen R&D for semiconductor development.

Semiconductor Industry Expectations

According to Gartner, global semiconductor sales will reach US$630 billion in 2024, marking a 19% growth over the previous year. The market is expected to reach US$717 billion by the end of 2025, with a 14% growth. This dynamic is evidence of the industry's recovery from the pandemic and highlights the importance of establishing resilient supply chains. 

Mexico seeks to integrate its front-end design and back-end assembly capabilities into global supply chains. The country has made some advances. For example, Baja California has exported semiconductors worth US$470 million, mainly to the  United States, followed by China.

Mexico also faces challenges, such as the need to increase investment in R&D, strengthen security, and improve logistics infrastructure. In addition, according to Deloitte, competition with countries such as Taiwan and South Korea requires public-private collaboration strategies and international alliances.