Mexico seeks to boost semiconductor production 25-fold in three years

Mexico aims to multiply its semiconductor production by 25 times within three years, seeking to capitalize on the United States' pivot towards North American supply chains and lessen its dependence on Asia. This ambitious goal was announced by Mexican Secretary of Economy Marcelo Ebrard ahead of formal trade talks with Washington.

Ebrard stated that this "reshoring" of production will be a central theme in the new commercial environment Mexico is discussing with the U.S., amidst ongoing tariffs, increased protectionism, and the review of the USMCA (United States-Mexico-Canada Agreement). "It will be very complicated to continue bringing all semiconductors from Asia. Very expensive, complex, and difficult," Ebrard said during the VC Day 2026 event in Mexico City, organized by the Mexican Association of Private Capital (Amexcap).

The event also highlighted significant investments, with $1.614 billion announced for Mexican startups in 2025 and $525 million in the first quarter of 2026. Ebrard noted that the U.S. strategic objective is to manufacture these key components for electromobility and artificial intelligence (AI) within North America. Mexico currently participates in this sector but not at the scale required by the evolving market.

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It will be very complicated to continue bringing all semiconductors from Asia. Very expensive, complex, and difficult.

"From the percentage that will decrease (due to reduced dependence on Asia), what part do we want to keep for ourselves?" Ebrard posed, estimating that Mexico could transition from a marginal role to capturing a significant fraction of this market adjustment. "That implies multiplying what we do in semiconductors by about 25 times in three years," he added.

Ebrard linked this opportunity to upcoming trade negotiations in the U.S., where Mexico will strive to maintain its "best relative position" against competitors, despite tariffs. He explained that Mexico's advantage, stemming from lower tariffs compared to its main competitors, helps explain the increase in Mexican exports to the U.S., even amid trade uncertainty.

The secretary also anticipates transformations beyond chips, including the pharmaceutical industry, particularly in active pharmaceutical ingredients, where both the U.S. and Mexico have a high dependency on Asia. He recalled that the U.S. pharmaceutical market is worth $1.4 trillion, while Mexico exports only $1.6 billion in this sector, predicting a significant multiplication of these sales. Changes are also expected in electronics, cables, connections, processed copper, medical devices, robotics, electromobility, electric motors, and public transport harnesses.

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From the percentage that will decrease (due to reduced dependence on Asia), what part do we want to keep for ourselves? That implies multiplying what we do in semiconductors by about 25 times in three years.