Electronic Manufacturing Facility in Mexico

In recent years, Mexico has emerged as a critical player in the global electronics sector of the manufacturing supply chain. As you may know, the manufacturing industry is one of the most promising, employing over 9 million workers in 2021.

But why is there such a surge of interest in the electronic industry? The answer lies in manufacturers’ increasing focus on diversifying their supply chains, having quality manpower, and being closer to their main end customers.

Investors have found that Mexico offers a compelling package: an attractive location, cost-effectiveness, infrastructure, favorable trade treatments, and a skilled workforce—a world-class competitive advantage.

So, as we approach 2024, let’s explore the reasons why establishing your electronic facility in Mexican territory is a smart, strategic move.

Overview of Electronic Manufacturing in Mexico

As of 2018, Mexico ranked as the 6th largest exporter of electronic goods globally. That same year, the export value witnessed an impressive growth of 93.7% compared to the previous year. Since then, the country has experienced steady economic growth but at a more conservative pace. 

This year, the consumer electronics sector recorded a notable 6.3% increase in the first half alone. It reached a value of 5.48 billion pesos, making its most robust performance yet. Mexico’s manufacturing capacity utilization reached about 83% in Q1 of 2023. The country exports over $71 billion in electronics products annually, predominantly to the US.

Additionally, Mexico is home to nine of the world’s ten leading electronics manufacturers, including Dell, LG, and Samsung

So, where are these companies located, and why are they so successful? 

Leading States in Mexican Electronics Manufacturing

The same report by Mexico’s Secretary of Economy shows that Baja California is the chosen Mexican location for electronic manufacturers

This region hosts the country’s largest number of electronics manufacturers, housing 184 companies in 2022, about 19% of the national total. 

Tijuana, in particular, stands as a global leader in electronics production. It employs over 120,000 people in 122 companies, mainly focusing on semiconductor manufacturing. 

However, the export values differ across states. As per Modern Machine Shop, the top five states by export value in Mexico are:

  1. Nuevo León (MXN $2,266.5 million)
  2. Coahuila de Zaragoza (MXN $983 million)
  3. Chihuahua (MXN $937.2 million)
  4. Tamaulipas (MXN $870.7 million)
  5. Baja California (MXN $686.9 million).

Which Consumer Electronic Goods Are Produced in Mexico?

Mexico’s electronics output is diverse. Many OEM (original equipment manufacturers) like Skyworks, and ODM (original design manufacturers) such as Samsung, are located here. 

Consumer electronics, like TVs and audio equipment, comprise a significant portion of Mexico’s production. However, the country excels in many devices, such as:

  • Aerospace electronics
  • Automotive electronics
  • Flat-screen televisions
  • CPUs
  • Color TVs
  • Electrical Machinery 
  • Telecom Accessories 
  • Electronic Microcircuits and Semiconductors 

Advantages of Manufacturing in Mexico

This land of opportunity is driven by its strategic location, decades of industry experience, and, most importantly, its people, making it a prime business destination. The country’s hard-working culture and infrastructure, supported by favorable regulations by the Mexican Government and strong international relationships, has positioned Mexico as a reliable location for investors looking to establish and grow their businesses. 

Here are some benefits that electric manufacturers have found in the country. 


Mexico has become a popular nearshoring destination for companies aiming to diversify and stabilize their supply chains. The reason being that the pandemic highlighted the risks associated with relying solely on distant manufacturing hubs, such as China. 

By nearshoring in Mexico, businesses benefit from advantages like decreased shipping times and costs, greater control over production processes, and increased agility in responding to market changes. 

At the same time, the process of moving operations to the country has become more accessible, thanks to the support of trusted partners, like our company, and government initiatives aimed at facilitating such transitions. 

Skilled Workforce Availability

Mexico’s skilled labor force is a critical asset in electronics manufacturing. The country’s universities and technical schools have forged strategic partnerships with the industry, ensuring a consistent supply of well-trained professionals.

Moreover, the presence of industry-specific clusters plays a decisive factor in nurturing workers with specialized knowledge. Professionals in Mexico are increasing their expertise within their niche. They are helping companies move from a manufacturing facility to a campus with research and development, with Mexican collaborators leading the way.

Free Trade Access and Trade Agreements

Free trade access and agreements significantly enhance Mexico’s appeal as a manufacturing destination. Mexico benefits from duty-free access to Canada and the United States, the primary North American markets, through the United States-Mexico-Canada Agreement (USMCA). This agreement has reinforced the protection for investors interested in Mexico, working as an instrument to guarantee stability. It also has accelerated industrial growth between its members by establishing rules that state that a percentage of an end product’s material must be fabricated in the Americas

This arrangement facilitates commerce between the US and Canada, so companies looking to penetrate those markets can establish in Mexico without facing high tariff costs. 

Additionally, Mexico’s extensive network of global trade agreements provides access to numerous international markets, further solidifying its role as a key player in global electronics manufacturing.

Industrial Acumen and Government Incentives

The country’s robust industrial base, including fields like automotive, aerospace, and medical devices, provides a reliable source of components and materials. 

Local, state, and federal governments actively collaborate with the manufacturing industry, offering some incentives and support for investment and growth. 

Strategic Location

Mexico’s strategic location offers significant advantages for manufacturers, especially those targeting the North American market. also, Mexico has critical port infrastructure to provide direct and efficient access to markets in the Pacific and Atlantic oceans. Establishing in Mexico allows for efficient and cost-effective logistics, including shorter shipping times and lower transportation costs to the main world markets. 

This geographical advantage enables manufacturers in Mexico to quickly adapt to market demands and fluctuations, ensuring a more agile and responsive supply chain.


Over the years, Mexico has invested in developing the proper infrastructure to ensure that all products manufactured in Mexico can be efficiently delivered to foreign markets. On the other hand, it is important to mention that in Mexico, you will find world-class facilities and industrial parks that will help manufacturers achieve their production goals without downtime.

Case Studies: Our Experience

We have worked with successful electric manufacturing companies that have established their operations in Mexico. For example, we have designed and built several world-class facilities for influential electronic market leaders like LG Electronics, Sony, Samsung, Daewoo, and Skyworks. To learn more about these projects, please visit here

Wrapping Up

Mexico’s electronics manufacturing industry is an advantageous destination for companies seeking reliable, innovative, cost-effective manufacturing solutions and world-class facilities.

At Hermosillo, we specialize in helping those businesses thrive. As newcomers search for reliable ways to enter and establish a presence in the country, we act as a trusted partner, guiding them through the process. Our expertise goes beyond construction.

With deep insights into the local industrial landscape and a thorough understanding of the specific needs of the electronics manufacturing industry, Hermosillo serves as a local ally and partner for companies interested in establishing their operations in Mexico.

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