Baja California is home to one of Mexico’s largest clusters of electronics manufacturers and suppliers, with over 200 companies—including Samsung, LG, and Foxconn—and 150,000 employees in the state. Since 2020, the consumer electronics market has continued to soar in development, reaching a record high sales volume in 2021 of over 178 million units sold.
The electronics manufacturing industry also represents one of the fastest-growing industries in Mexico with the city of Guadalajara, in particular, becoming a hotbed for electronics production. Deemed the “Mexican Silicon Valley,” this technology cluster has become recognized worldwide due to its potential for new job opportunities, supply chain contributions, and increased investment over the past decade.
Meanwhile, the Bajio region is home to several global electronics manufacturing companies, contributing to over 21% of the total production in the manufacturing sector. This is largely due to the formation of Mexico’s state government Program for the Development of Visualization Devices. This program was designed to highlight the importance of TV production and emphasize the competitiveness of electronics manufacturing.
As advanced technologies are introduced and market demand expands and evolves, Mexico will increasingly become a central place for growth among global electronic brands. And with a young, industrial workforce, established infrastructure, and new growth on the horizon, Mexico’s electronics manufacturing industry will continue to provide opportunities for U.S. and other foreign manufacturers.
Mexico has over 730 plants manufacturing audio and video, telecommunications, computer equipment, and related parts. It is the largest exporter of flat-screen TVs in the world, the third-largest exporter of computers, and the eighth-largest producer of electronics in the world. Top-grossing electronics products also include:
IVEMSA can help manufacturers, suppliers, and assemblers create a strong presence in this industry. Our shelter model allows companies to focus on daily production while we take on all administrative responsibilities necessary to keep a company running. Foreign manufacturers also minimize risk and liability when working under the shelter and already have access to all permits and certifications, including the IMMEX program.
Being part of the IMMEX program exempts U.S. and other foreign manufacturers from the 16% value-added tax on all temporarily imported goods, services, and equipment. When working with a shelter company, companies can receive this tax advantage from day one. Additionally, when creating such specialized products, a skilled, reliable workforce is critical. We’ll plug you into our network of talent and make you attractive to the best employees of Mexico’s electronics manufacturing workforce.
And as the electronics industry changes, IVEMSA’s shelter services allow your company to remain agile to accommodate for growth. Whether you want to scale up production or want to phase out of the shelter model altogether, we provide the transparency and direction necessary to drive your success.
With the rise in competition regarding electronics manufacturing in Mexico, it’s beneficial to have a local expert like IVEMSA as a partner. With nearly three decades of experience and a commitment to our partner’s growth, we are dedicated and equipped to support your manufacturing needs.
As an electronics manufacturer, it’s crucial to protect your IP. Mexico is known for its strong protections for intellectual property, patent, and trademark rights when it comes to technological innovation. As part of the USMCA, electronics manufacturing in Mexico provides a minimum of 15 years of protection for industrial designs, marking the highest standard for enforcing IP rights.
Mexico has a reputation for a pro-business labor culture and highly skilled workforce. While other countries, like the U.S., face an industrial labor shortage, Mexico’s labor pool is regularly replenished. Additionally, foreign operators experience significant cost savings when hiring for industrial roles. Many businesses save up to 50% on labor cost alone. IVEMSA can help you recruit, train, and keep the best employees and scale based on specific needs and budgets.
IVEMSA provides expertise in Mexico’s labor laws and many international trade agreements, including the USMCA. We’ll keep you updated on all regulations and make sure you’re in compliance at all times. Labor laws in Mexico are much different than other regions of the world and provide first-hand experience of how to handle and abide by them. Furthermore, tax and trade laws can become quite complex and require regular monitoring to maintain compliance.
IVEMSA is your partner through every step of the process. Rather than facing the challenge of hiring individual administrative roles, we provide managed services covering HR, accounting, taxes, compliance, and more. We’ll help you set up a shelter, find a site, recruit employees, and contract vendors for build-out, all within three to four months. Then, our management services help keep things running. This allows manufacturers to fully focus on production and maintain complete ownership of all property and processes.
After eight years as an IVEMSA shelter client, a leading electronics manufacturer decided to create its own Mexican business entity. IVEMSA’s human resources team, along with the client’s upper management, developed a plan to transfer 550 personnel from IVEMSA’s payroll to the new entity and a communications strategy to keep employees informed of the transition.Read case study >
Brad Nelson, Plant Manager, LMI Aerospace
John Chettleburgh, President & CEO, Formglas
Jonathan Minter, President, German Machined Products, Inc.
Bill Jordan, Shop Manager, Allied Tool & Die
Loren Engel, General Manager, GKN Aerospace Composites
Jose Fletes, Division President, Panasonic Industrial Devices Mexicana
Rick Martindale, President, Wunderbar
David Bouley, President, Miraco
Contact us today and see how we can help you take advantage of all the benefits of manufacturing in Mexico - without the hassle.