Key Players Identify Mexico’s Role in the Global Chip Industry
During a panel at the México Digital Summit 2025, industry leaders and government officials discussed Mexico’s role in the semiconductor sector. The panelists—Héctor Marín from Qualcomm, Hugo Simg from MediaTek, and Diego Flores from the Mexican Secretariat of Economy’s Industrial Digital and Electronics Sector—concluded that Mexico should focus on specific areas within the semiconductor supply chain rather than aiming to build cutting-edge manufacturing facilities.
Choosing the Right Link in the Chain
Héctor Marín from Qualcomm emphasized that Mexico should identify its desired role in the semiconductor industry. He stated, “It’s crucial to determine what role Mexico wants to play,” acknowledging that the country is unlikely to see a major semiconductor manufacturing facility in the short or medium term due to the high costs and technological complexity. Instead, Mexico can excel in assembly, testing, packaging (ATP), development and validation, engineering services, and hubs near the United States.
Marín also pointed out that even advanced countries like the United States do not yet have 2nm fabrication facilities in operation. Thus, the competition is not about being “all or nothing,” but rather focusing on areas where Mexico can leverage its talent and infrastructure incrementally.
Long-Term Vision: Beyond a Six-Year Term
Hugo Simg from MediaTek stressed the need for a clear industrial policy with a defined purpose. He said, “We need to know our vocation and decide what we want to do.” Simg acknowledged that the semiconductor ecosystem is vast, encompassing materials, equipment, chemicals, design, front-end, back-end, testing, and packaging. Therefore, attempting to cover all aspects simultaneously is unfeasible.
Simg suggested that Mexico should start by focusing on materials and consumables, advanced packaging, and testing for various chip families, including the automotive sector which does not require 2nm nodes.
He added that this is not a six-year project but rather one spanning multiple six-year terms.
A Western Approach to Semiconductors
Diego Flores from the Mexican Secretariat of Economy described a global reconfiguration underway post-pandemic and amidst new tensions. The “landing price,” which accounts for logistical and geopolitical risks, is replacing unit cost as the primary criterion for plant location.
Flores explained that international discussions are shifting towards establishing a “Western” supply chain, bringing critical value-adding stages in the semiconductor chain to the Americas. He mentioned that the United States is targeting Mexico, Costa Rica, and Panama for this initiative. Flores also hinted that Mexico is pushing to include a semiconductor chapter in the USMCA to strengthen the regional industry.
The Automotive Sector: A Realistic Path for Mexico
Simg highlighted the automotive industry as a practical avenue for Mexico to gain scale and traction in the semiconductor sector. He noted that it requires reliability, volume, and certifications.
Simg emphasized that if Mexico accelerates in semiconductor testing and packaging for the automotive, telecom, and consumer electronics sectors, it can join global programs already demanding millions of components with logistical advantages close to its North American clients.
Key Questions and Answers
- What is Mexico’s role in the semiconductor industry? Industry experts agree that Mexico should focus on specific areas within the semiconductor supply chain, such as assembly, testing, packaging (ATP), development and validation, engineering services, and establishing hubs near the United States.
- Why is building a cutting-edge manufacturing facility unlikely for Mexico in the short term? The high costs and technological complexity associated with advanced semiconductor manufacturing facilities make it unlikely for Mexico to develop such facilities in the short or medium term.
- What aspects of the semiconductor ecosystem should Mexico prioritize? Given the vastness of the semiconductor ecosystem, Mexico should start by focusing on materials and consumables, advanced packaging, and testing for various chip families, including the automotive sector.
- How long will it take for Mexico to establish itself in the semiconductor industry? According to experts, this is a long-term endeavor spanning multiple six-year terms rather than a single six-year period.
- What is the significance of the “landing price” concept? The “landing price” accounts for logistical and geopolitical risks, replacing unit cost as the primary criterion for plant location in a post-pandemic and geopolitically sensitive environment.
- Which sectors can Mexico leverage for growth in the semiconductor industry? The automotive sector, along with telecom and consumer electronics, presents practical opportunities for Mexico to gain scale and traction in the semiconductor industry.
