The United States’ new trade deals and the elimination of various restrictions are expected to help boost the manufacturing industry in Mexico. Since its early 1900s origins, the country’s automotive industry has been able to establish itself as a globally competitive player. In 2021, the passenger car market in Mexico had revenue of more than $55 billion, up from over a quarter of its 2020 revenue.

Despite the COVID-19 pandemic’s impact on the production of vehicles, Mexico was still able to produce some of the world’s largest motor vehicle brands. Many economies have been affected by the semiconductor crisis. Some blame the country’s manufacturing consolidation and shrinking supplier base for the shortage.

Around 75% of the world’s semiconductors are made in East Asia. According to a study conducted by TACNA Manufacturing, the shortage will only get worse unless companies expand their supply network and outsource production to other regions such as Mexico.

According to market researchers at Tetakawi, Mexico’s semiconductor industry is on par with the US’ production. As one of the world’s largest producers of electronics and automotive components, the country offers a resilient and cost-effective manufacturing solution for companies looking to diversify their operations.

Mexico’s manufacturing capacity and proximity to Europe and the US are some of the factors that have made it an attractive location for companies looking to expand their operations. According to MacroFab’s CEO, Mr. Govshteyn, the country has always been a reliable and competitive manufacturing market.