Mexico Semiconductor Market

Mexico Semiconductor Market Overview:

The Mexico semiconductor market size reached USD 10.41 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 18.41 Billion by 2033, exhibiting a growth rate (CAGR) of 6.54% during 2025-2033. Rise in nearshoring trends, U.S.–Mexico trade integration, government incentives, growing demand in automotive and electronics sectors, increasing focus on supply chain resilience, and extensive investments in localized chip assembly are some of the key factors bolstering the market growth.

Mexico Semiconductor Market Trends:

Nearshoring and U.S.-Mexico Semiconductor Supply Chain Integration

Amid global supply chain disruptions and the strategic pivot of critical technology sectors, Mexico has emerged as a key hub for nearshoring semiconductor operations, particularly in collaboration with U.S. firms aiming to build a resilient North American chip ecosystem. Spurred by the 2022 U.S. CHIPS and Science Act, companies are increasingly establishing or expanding chip assembly, testing, and packaging (ATP) facilities in Mexico. In 2023, Mexico’s electronics exports exceeded USD 100 billion, reflecting the rising semiconductor content in consumer and automotive products. Strategically located states such as Chihuahua, Jalisco, and Nuevo León have become hotspots for this shift, thanks to their proximity to the U.S., strong industrial base, and skilled labor pool. In 2024 alone, over 20 semiconductor-related foreign investments were announced or expanded in these regions. Additionally, the USMCA agreement has facilitated streamlined trade and tariff efficiencies, enabled seamless cross-border component flow, and encouraged U.S.–Mexico co-manufacturing models. This growing nearshoring trend is not only reducing dependence on Asian supply chains but is also solidifying Mexico’s role as a critical player in the global semiconductor supply network.

Automotive Semiconductor Demand and Electric Vehicle (EV) Growth

Mexico’s thriving automotive industry, currently the world’s seventh-largest vehicle producer, is rapidly shifting toward smart and electric vehicles (EVs), driving robust demand for automotive-grade semiconductors. In 2023 alone, Mexico manufactured over 3.5 million vehicles, with EV and hybrid production climbing steadily. Modern vehicles now integrate over 1,000 semiconductor chips per unit, powering everything from infotainment and battery management systems to advanced driver assistance systems (ADAS). Global automakers such as General Motors, BMW, and Tesla suppliers are ramping up EV investments in their Mexican facilities, increasingly relying on localized semiconductor supply chains to meet just-in-time production needs and avoid the chip shortages that disrupted operations in 2021–2022. Supporting this transformation, both government and industry players are investing in STEM education and chip-focused R&D, with institutions like Tec de Monterrey launching specialized programs in embedded systems and semiconductor engineering.

Mexico Semiconductor Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level for 2025-2033. Our report has categorized the market based on components, material used, and end user.

Component Insights:

• Memory Devices
• Logic Devices
• Analog IC
• MPU
• Discrete Power Devices
• MCU
• Sensors
• Others

The report has provided a detailed breakup and analysis of the market based on the components. This includes memory devices, logic devices, analog IC, MPU, discrete power devices, MCU, sensors, and others.

Material Used Insights:

• Silicon Carbide
• Gallium Manganese Arsenide
• Copper Indium Gallium Selenide
• Molybdenum Disulfide
• Others

A detailed breakup and analysis of the market based on the material used have also been provided in the report. This includes silicon carbide, gallium manganese arsenide, copper indium gallium selenide, molybdenum disulfide, and others.

End User Insights:

• Automotive
• Industrial
• Data Centre
• Telecommunication
• Consumer Electronics
• Aerospace and Defense
• Healthcare
• Others

The report has provided a detailed breakup and analysis of the market based on the end user. This includes automotive, industrial, data centre, telecommunication, consumer electronics, aerospace and defense, healthcare, and others.

Regional Insights:

• Northern Mexico
• Central Mexico
• Southern Mexico
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern Mexico, Central Mexico, Southern Mexico, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Mexico Semiconductor Market News:

• February 2025: Mexico launched the Kutsari project to strengthen its semiconductor industry, focusing on chip design, fast-tracking patents, and reducing import dependency. The initiative includes design hubs, legal reforms, and plans for local manufacturing to support key domestic industries.
• March 2024: The United States and Mexico initiated a semiconductor partnership under the CHIPS Act's USD 500 million International Technology Security and Innovation (ITSI) Fund. This collaboration aims to assess and enhance Mexico's semiconductor ecosystem, focusing on infrastructure, workforce development, and regulatory frameworks. The goal is to strengthen North America's semiconductor supply chain resilience and reduce dependency on Asian markets.

Mexico Semiconductor Market Report Coverage:

Key Questions Answered in This Report:

• How has the Mexico semiconductor market performed so far and how will it perform in the coming years?
• What is the breakup of the Mexico semiconductor market on the basis of components?
• What is the breakup of the Mexico semiconductor market on the basis of material used?
• What is the breakup of the Mexico semiconductor market on the basis of end user?
• What is the breakup of the Mexico semiconductor market on the basis of region?
• What are the various stages in the value chain of the Mexico semiconductor market? 
• What are the key driving factors and challenges in the Mexico semiconductor market?
• What is the structure of the Mexico semiconductor market and who are the key players?
• What is the degree of competition in the Mexico semiconductor market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Mexico semiconductor market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Mexico semiconductor market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Mexico semiconductor industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.