Market Overview

In 2006, about 32 percent of all electronic components imported to Mexico were from the United States, representing a 3.73 percent increase from the previous year.  Nevertheless, China continues to gain market share and had an increase of 58 percent, while Japan and Korea had increases of 11 percent and 75 percent respectively.  Nevertheless, there are competitive advantages for Mexican electronic firms to import components from U.S. suppliers under NAFTA, including short lead times in transportation, virtually 100 percent duty-free electronic components, and streamlined customs procedures.

In recent years, Mexico’s exports of electronic products have considerably increased by almost 20 percent.  In 2006, electronics exports reached US$ 54.7 billion, almost a 19.3 percent increase from 2005.  The main manufacturing sub-sectors continued to be information technologies (33%) and audio and video (30%).  Mexico has two main centers for the electronic industry:  Tijuana, Baja California and Guadalajara, Jalisco.

Best Prospects

The major components and parts imported by the electronics manufacturing industry under HTS 85 during 2006 were: digital monolithic integrated circuits; parts/antenna for transmission for radio and television; monolithic integrated circuits, other than digital; printed circuits, cathode-ray, television picture tubes for color monitors; electrical apparatus; hybrid integrated circuits; insulated electric conductors; diodes ex-photosensitive or light-emitting diodes; electrical inductors; electrical conductors; indicator panels incorporating LCD’s and cards electrically integrated.

Market Opportunities

As Mexican manufacturing of electronic products becomes more complex, U.S. companies can find opportunities in new sectors such as batteries, antennas and switches, relays and plugs. Also, U.S suppliers of services related to electronic components such as logistics, scrap management, inventory management, etc., can find opportunities in the Mexican market.

Market Research

Mexico Electronics Industry 2008 Growing Expectations

The electronics industry did not meet their investment goal of US$ 300 million during 2007. However, they are confident that investment will increase in 2008. Growing Expectations for the Electronics Industry in the State of Jalisco for 2008. The Electronics Industry in the State of Jalisco registered US$ 283.4 million in investment during 2007, below the anticipated investment of US$ 300 million.

Industry analysts predict that the following segments will grow as follows in 2008:
Manufacturing sector 5 percent in exports
Design and Services 100 percent
Software 30 percent.

Within the electronics industry, the software production and distribution segment employs 6,500 in the State of Jalisco.

Trade Events

Upcoming Trade Events in Mexico

XXIX CANIETI Annual National Convention: July 31 - August 3, 2008 – Mexico City

During the XXIX Covention under the title “Government, School and Industry: Winner Triple Play”.  Under the scope of this convention will take place the 13. Convention of the High Technology Industry of Western Mexico, organized by CANIETI – Western Chapter

PROVELEC 2008: September 10, 2008 - Guadalajara, Jalisco, Mexico

Provelec is the encounter of electronics Industry in Mexico that meet the main manufacturing companies of the Mexico’s Electronic Industry which include the sectors of: automotive, home appliances, metal mechanical, medical aerospace, services, software multimedia and animation to carryout “Electronic Industry's Business Encounter" and permits us to join in the same forum with our current and potential suppliers. The PROVELEC´s objectives is to provide to all our attendees the industry overview, trends as well as show them the business opportunities and purchasing strategies of all the top manufactures of the electronics industry in Mexico.

Upcoming Mexican Delegations to the U.S.

International CES: January 7 - 10, 2009 – Las Vegas, N. V.

International CES is the world’s largest annual trade show for the broad-based consumer electronics technology market, from mobile electronics, audio and video, home networking information and wireless technology to high-end audio and satellite systems.  It is the premier event bringing together consumer electronics product manufacturers, distributors, researchers, content developers, financial analysts, and the press with the highest concentration of buyers and decision-makers in the retail distribution channel.

Further information, comments or questions

If you wish to write us regarding this sector, please contact:

U.S. Commercial Service Tijuana: Monica Rosas, Trade Specialist

U.S. Commercial Service Guadalajara: Gabriela Hernandez, Trade Specialist