Mexico Surpasses China as Top US Tech Supplier

In 1H25, Mexico's high-tech exports to the United States reached a new peak, positioning the country as the leading supplier of these goods, surpassing both China and Taiwan. Mexican exports in this sector totaled US$66.6 billion from January to June, a leap over China's US$35.4 billion and Taiwan's US$62.6 billion. This surge represents 51% year-over-year growth, highlighting a strong expansion among major tech-exporting nations to the United States.

The shift in the supply chain is primarily attributed to a few key factors. Jean Lucca Aleskovich, CEO, Nvidioso Semiconductors, explained that this development has accelerated the nearshoring of critical manufacturing processes to Mexico. The combination of tariff advantages under USMCA and Mexico's geographical proximity to the United States has proven to be a powerful incentive. This strategic location not only reduces delivery times by 15-20% but also minimizes logistical and political risks often associated with supply chains in Asia. The USMCA's rules of origin are particularly beneficial, as they allow chips and other components packaged in Mexico to enter the US duty-free. This provides a cost advantage, helping companies avoid potential 100% tariffs that could apply to products from other regions.

Furthermore, Mexico's growing capacity in high-tech assembly and testing is seen as a crucial complement to the US CHIPS Act, which aims to boost domestic component production. Aleskovich noted that Mexico is effectively becoming the "missing link" in the North American supply chain. This robust regional partnership ensures faster and more secure product replenishment without the need to rely on overseas manufacturing cycles, thereby strengthening the entire North American economy.