From Manufacturing Hub to Higher Value-Added Functions
Mexico is moving past its traditional role as an assembler and taking on more valuable functions in the global electronics industry, such as design, innovation, and production line integration.
Geopolitical Shifts and COVID-19 Pandemic Accelerate Mexico’s Rise
Geopolitical changes and the COVID-19 pandemic have positioned Mexico as one of the main beneficiaries of the industrial restructuring, gaining prominence not only in manufacturing but also in design and innovation.
“Ironically, Mexico has emerged as one of the winners in this new geopolitical scenario,” said Lorena Villanueva, General Director of the Global Electronics Association (formerly IPC), in an interview.
Border closures in China during the pandemic and growing trade tensions between the US and China sped up a global manufacturing map reconfiguration, opening opportunities for Mexico.
The electronics industry is a cornerstone of global trade, with one in five dollars from world commerce coming from this sector, according to Villanueva.
From Manufacturing to “Mentefactura”
Over the past two decades, Mexico’s electronics industry has flourished in border states like Chihuahua, Baja California, Nuevo León, the Mexico City area, and Jalisco.
In places like Ciudad Juárez, known as a global hub for wire harnesses, 65% of the activity remains manufacturing. However, the focus is shifting from assembly to innovation and design.
“Over the past couple of years, we’ve seen Mexico transitioning from a purely manufacturing nation to one more focused on innovation and design,” said Villanueva.
This transformation involves not only production process evolution but also a change in workforce training methods.
Although large-scale semiconductor fabrication is still a distant possibility, Mexico actively participates in crucial ecosystem stages: designing circuit boards, integrating production lines, and advanced assembly.
Education and Talent Development
The Global Electronics Association, which includes over 3,000 industry members, has identified a structural deficit: if Mexico aims to meet global electronics talent demand, it would face a hypothetical gap of 5 million engineers.
Currently, Mexico trains around 175,000 engineers annually, far short of the estimated 650,000 needed.
“The only way to become a strategic partner with the US in this industry is through talent development,” said Villanueva.
The challenge, according to the executive, is that many companies still view training as an expense rather than an investment.
The association works to bridge this gap by implementing IPC standards, certification programs, and partnerships with educational institutions.
Two relevant norms in Mexico are IPC-A-610, which sets criteria for electronic circuit board assembly acceptability, and IPC-A-620, focusing on cable harnesses. Both currently account for over 50% of standard usage in the country.
Aerospace and Automotive Sectors
While traditional manufacturing remains dominant, sectors like automotive and aerospace are gaining ground in using advanced standards.
“We see significant growth in certifications for electric vehicles and the aerospace industry, especially in states like Querétaro,” said Villanueva.
Querétaro hosts UNAM’s High Technology Unit, offering specialized aeronautics programs and collaborating with the Global Electronics Association to train technical talent.
“We have an agreement with UNAM and the state government to support local industry with standards, certifications, and training,” said Villanueva.
Tariffs and T-MEC
A recent challenge has been the tightening of origin rules and tariffs associated with the T-MEC.
However, Villanueva believes the electronics sector’s growth trend in Mexico remains unaffected.
“We are committed to regional trade stability and growth,” said Villanueva.
The association maintains representation in China and actively participates in US-Mexico semiconductor forums, focusing on talent development.
Plan Mexico
Villanueva asserts that Mexico is executing a clear plan: capitalize on the new geopolitical order to position itself as a strategic partner of the US in the electronics supply chain.
The Plan Mexico, launched by the federal government, aims to establish Mexico as a crucial component in this industrial puzzle.
“We are aligned at municipal, state, and federal levels. The only thing that will enable this transformation is education,” said Villanueva.
