Promoting the Development of the Semiconductor Ecosystem in Mexico

1. Assessment and recommendations

Abstract

This chapter summarises the report’s major findings and provides policy recommendations to promote the development of Mexico’s semiconductor ecosystem. It examines Mexico’s main strengths and focuses on five key areas for improvement: aligning semiconductor strategies and stakeholders; developing semiconductor skills and human talent; enhancing semiconductor research and innovation; improving infrastructure; and supporting the integration of semiconductor firms into global value chains.

Policy recommendations

Co‑ordinate and align strategies to foster the semiconductor ecosystem

• Build on existing semiconductor-related agreements and initiatives to establish a co‑ordination mechanism across all relevant federal and regional government institutions and non‑governmental stakeholders.

• Develop a national semiconductor strategy, with measurable goals and milestones for the development of the semiconductor ecosystem, and by enhancing consultation with stakeholders.

• More effectively leverage existing data infrastructure to inform policies for the semiconductor ecosystem and the broader economy.

Promote the development of skills and human talent for semiconductors

• Strengthen science, technology, engineering and mathematics (STEM) subjects in primary and secondary education.

• Renew efforts to reduce student dropout rates, including by expanding targeted support for children from disadvantaged socio-economic backgrounds.

• Support the development and consolidate the implementation of new training models for secondary school teachers.

• Strengthen linkages between higher education curricula and the needs of the semiconductor industry, including through enhanced co‑ordination with the domestic industry and by fostering international partnerships.

• Streamline and support the institutions and procedures involved in higher education accreditation and evaluation.

• Expand efforts to encourage female participation in STEM, including through the NiñaSTEM programme and Modo STEM initiative.

• Involve research centres in the development of semiconductor curricula.

• Improve the content and increase the appeal of vocational education and training (VET) with a focus on semiconductor skills and occupations.

• Further enhance co‑ordination with industry to ensure that VET meets the needs of the semiconductor industry, including through stronger incentives for dual school-industry training programmes.

• Support the development of VET trainers to keep abreast of the latest industry developments by facilitating the involvement of industry experts in VET.

• Focus on improving English-language skills in the workforce by strengthening English courses at all levels of education, including VET.

• Promote “brain circulation” and mitigate “brain drain” by focusing on research and innovation.

Realise the potential of local semiconductor research and innovation

• Facilitate the acquisition of specialised equipment through more flexible budgeting cycles and expediting imports.

• Incentivise the commercialisation of innovation, including by allowing public sector researchers to partially retain intellectual property (IP) rights on their inventions.

• Further strengthen academia-industry linkages and facilitate the involvement of researchers in both public and private sector activity.

Improve the enabling infrastructure required for further semiconductor investments

• Tackle road insecurity to reduce the insurance and security costs that firms face with road transportation.

• Incentivise semiconductor and other firms to invest in cutting-edge technology for water (and wastewater) management and promote firms’ integration as recyclers in water network systems.

• Incentivise private investment in renewable energy, including by clarifying and streamlining the power generation permit application process and facilitating energy auto-production by semiconductor and other firms.

Support semiconductor firms to integrate global value chains

• Facilitate foreign investment by finalising the integration of information relevant for semiconductors in the digital one-stop shop.

• Facilitate trade of relevant semiconductor inputs through a customs programme for a pre‑determined list of key inputs and through electronic customs scans.

The electronics sector has a longstanding presence in Mexico and, despite its relatively small semiconductor industry, Mexico is emerging as a location of interest for investment by important semiconductor firms. Mexico’s strengths include its openness to trade and trade facilitation measures, a skilled and experienced workforce representing a large potential talent pool for the semiconductor industry, an innovation ecosystem with several research centres focusing on semiconductor and related technologies, and its privileged geographic location, next to semiconductor manufacturing bases in the United States. Mexico is also home to important semiconductor-using industries, including automotive, computer equipment, aerospace, domestic appliances and data centres.

Mexico can further enhance its attractiveness for semiconductor firms by building on these underlying strengths. Mexico should look to: enhance its strategic and institutional framework for semiconductor policy; tap into the talent pool by continuing to invest in education and training; realise the potential of its national semiconductor research and innovation capabilities; improve infrastructure, notably related to clean energy, water and secure transportation; and facilitate semiconductor firms’ participation in global value chains (GVCs).

This report contains concrete recommendations to support the development of Mexico’s semiconductor ecosystem. In a constrained fiscal environment, governments should carefully assess all spending decisions, with a view to retaining budget neutrality, and identify and prioritise crucial investment areas to foster the semiconductor ecosystem. The following sub-sections provide policy recommendations in key areas.

1.1. Co‑ordinate and align strategies to foster the semiconductor ecosystem

Several federal agencies and state governments in Mexico are developing and implementing industrial strategies and policies that could strengthen the country’s semiconductor ecosystem. A cohesive federal strategy for semiconductors requires enhanced co‑ordination across all levels of government and input from industry, academia, labour unions and civil society stakeholders.

1.1.1. Build on existing semiconductor-related agreements and initiatives to establish a co‑ordination mechanism across all relevant federal and regional government institutions and non-governmental stakeholders

Semiconductor policy is a complex, cross-cutting issue that requires the input and support of a range of stakeholders, both inside and outside government. Clear co‑ordination across these stakeholders is therefore essential. The Collaboration Agreement (Convenio de Colaboración), established in June 2024, is a positive first step, as it has begun to mobilise and co‑ordinate nine key federal secretariats and agencies to promote the development of the semiconductor industry. This type of co‑ordination is instrumental when seeking synergies across policy areas that are relevant to the semiconductor ecosystem (see Section 3.1.2 for further details).

At the sub-national level, a number of Mexican states have developed strategies with an emphasis on different areas of the semiconductor ecosystem, such as clean energy in the state of Sonora, human talent in the state of Baja California, technology and innovation in the state of Jalisco, as well as logistics and innovation in the capital Mexico City (see Section 3.1.3). These initiatives would benefit from a federal co‑ordination mechanism that brings together the expertise of the different stakeholders, including federal secretariats already part of the Collaboration Agreement and regional governments, as well as representatives from industry, academia, civil society and labour unions. While it is encouraging that the National Chamber for the Electronics, Telecommunications and Information Technology Industries (CANIETI), an industry association, has established a Forum for Semiconductor Collaboration (Foro de Colaboración para Semiconductores), there would also be real merit in Mexico’s federal government using its convening power to bring together and engage with a broader set of stakeholders.

A government-led co‑ordination mechanism, encompassing representatives from different federal secretariats, Mexican state governments and relevant non-governmental stakeholders, would allow for complementary policy initiatives across regions, ensuring an efficient allocation of public resources based on regional competitive advantages, while also ensuring that different stakeholder perspectives and the underlying trade-offs (for example, ease of doing business and environmental concerns) are taken into account.

1.1.2. Develop a national semiconductor strategy, with measurable goals and milestones for the development of the semiconductor ecosystem, and by enhancing consultation with stakeholders

Building on the previous recommendation in Recommendation 1.1.1, Mexico could look to further co‑ordinate its key stakeholders through the publication of a national semiconductor strategy. A national strategy would send a clear signal to governmental and non-governmental stakeholders and allow them to focus their resources on the priorities identified in the strategy. A federal semiconductor strategy, developed by and under the responsibility of the Secretariat of Economy (Secretaría de Economía), should align with existing national strategies in relevant areas, such as the Plan for Mexico (referred to hereafter by its Spanish name, Plan México), the country’s flagship programme, launched in 2025 to stimulate economic growth and investment. The explicit reference to semiconductors in Plan México further reflects the country’s commitment to playing a significant role in the evolving semiconductor GVC (see Section 3.1.1 for additional details).

Mexico should also ensure that its national semiconductor strategy is informed by the Master Plan for the Development of the Semiconductor Industry in Mexico 2024-2030 (Plan Maestro para el Desarrollo de la Industria de Semiconductores en México 2024-2030, hereafter referred to as the Master Plan), put forward by industry association CANIETI. In developing the Master Plan, CANIETI convened the Forum for Semiconductor Collaboration which could provide a possible model for the inter-institutional co‑ordination mechanism recommended in Recommendation 1.1.1.

A national semiconductor strategy would serve as the guiding tool for stakeholders, providing policy certainty and signalling Mexico’s long-term commitment to this industry. Measurable goals and milestones would also help inform the strategy, and the monitoring of these goals should be a core part of the strategy. Enhancing consultation with the different governmental and non-governmental stakeholders, as proposed in Recommendation 1.1.1, would also be important for the implementation of the strategy.

1.1.3. More effectively leverage existing data infrastructure to inform policies for the semiconductor ecosystem and the broader economy

Leveraging existing data infrastructure would help inform the national semiconductor strategy (see Recommendation 1.1.2) and related policy actions. Developing the evidence base through the analysis of firm-level and other types of highly disaggregated data are key to better understanding the semiconductor ecosystem and other parts of the economy (see, for example, Box 2.1).

Mexico could improve access to and sharing of data across the public sector, in line with practice in other OECD Member countries (see Section 2.1.3). This includes leveraging the rich disaggregated data available to different institutions and agencies, such as, but not limited to, balance sheet data to enhance the monitoring of firm performance, value-added tax data to enable the identification of the local network of firms involved in the semiconductor ecosystem (including suppliers and customers), customs data to identify international linkages, or linked employee-employer data to monitor occupations, skills and wages. More granular, comparable and timely data on infrastructure (e.g. water availability, road transportation), as outlined in Section 3.2.2, would also be important to inform policy actions in support of the development of the semiconductor ecosystem.

Disaggregated data help identify patterns and infer causal relationships that are otherwise unclear. Disaggregated data would also help evaluate the impact of existing (and forthcoming) policies, monitor changes in the dynamics of the semiconductor ecosystem and inform the development of the semiconductor strategy outlined above. Facilitating access to anonymised granular data (i.e. beyond the industry level) would contribute to a better understanding of the semiconductor ecosystem, as well as other industrial ecosystems.

1.2. Promote the development of skills and human talent for semiconductors

Stakeholders cite the scarcity of skilled professionals as a critical barrier to the development of semiconductor ecosystems, both in Mexico and internationally. Developing a robust pipeline of skills is crucial for countries aiming to expand their role within the semiconductor GVC. Technical aptitude – the understanding and application of technical concepts – is particularly relevant to the engineering and technician profiles required for the semiconductor industry. The demand for similar skills from other industries, such as the automotive industry, suggests that policies targeting the development of skills demanded by the semiconductor industry can yield double dividends.

Mexico has a large pool of young technical professionals and university graduates, including those from public institutions. There is nevertheless significant untapped potential to expand the pool of talent for semiconductors, as suggested by low education enrolment rates for 15-19 year-olds, the high share of inactive 18-24 year-olds who are neither employed nor in formal education, and Mexico’s high labour informality. See also recent OECD Economic Surveys of Mexico (OECD, 2024[1]; OECD, forthcoming[2]).

1.2.1. Strengthen STEM subjects in primary and secondary education

Mexico’s share of engineering graduates (at the tertiary level) exceeds the OECD average and is the highest in the Americas. Nevertheless, evidence suggests that the pipeline for tertiary engineering graduates could be significantly expanded through policy interventions at earlier education levels: the 2022 OECD Programme for International Student Assessment (PISA) results show that the general population of 15 year-olds in Mexico perform below the OECD average, including in science and mathematics.1 Realising Mexico’s potential for a skilled semiconductor workforce therefore requires interventions to strengthen STEM education in primary and secondary education (for more details, see Section 2.3.1).

Mexico could further strengthen STEM in primary and secondary education through specific measures, such as promoting the use of technology-based teaching methods (including digital tools) and practical learning, introducing STEM role models, providing students with real-world applications of STEM and devoting more hours to STEM in the curricula (for more details, see Section 3.2.1).

1.2.2. Renew efforts to reduce student dropout rates, including by expanding targeted support for children from disadvantaged socio-economic backgrounds

Graduation rates from secondary education remain significantly below the OECD average, thereby reducing the talent pool for STEM jobs, including for the semiconductor industry. Mexico should therefore continue measures to address the relatively high dropout rates between lower and upper secondary education, for example by expanding targeted support for children from disadvantaged socio-economic backgrounds. Programmes provided by certain state governments, such as Strong Families Scholarships (Becas Familias Fuertes por la Educación) and My Scholarship to Start (Mi Beca para Empezar), are examples of promising initiatives. The Benito Juárez Universal Scholarship, which is not means-tested, was implemented with the goal of significantly benefitting students from low-income families or marginalised communities. Undertaking sound evaluation of these initiatives, also recommended in a previous OECD Economic Survey of Mexico, would help prioritise those that are more effective at reducing dropouts (OECD, 2024[1]).

Providing second-chance programmes (including vocational training), expanding the provision of summer camps, strengthening early warning mechanisms and interventions to support students at risk of dropping out, enhancing the engagement of parents and families through dedicated school activities and demonstrating the value of additional education could also help incentivise students to continue to upper secondary education (for more details, see Section 3.2.1).

1.2.3. Support the development and consolidate the implementation of new training models for secondary school teachers

Teachers play a crucial role in developing a pipeline of STEM talent and potential future semiconductor workforce. Enhanced evaluation and training of teachers (for example, through greater collaboration between schools and higher education institutions) and better career development opportunities could also contribute to better secondary education outcomes. Teachers’ time limitations, financial constraints and a lack of incentives often hinder their participation in professional development activities. The General Law of the System for the Teaching Profession (Ley General del Sistema para la Carrera de las Maestras y los Maestros, LGSCMM) enacted in 2019 is an important step towards promoting the professional development of teachers. Mexico should continue to incentivise participation in continuous professional development programmes for teachers, notably those focused on the use of new (digital) technologies and technical development in STEM areas.

Well-trained teachers can foster early interest in STEM subjects among students in primary education and the early grades of secondary education and provide appropriate experience in STEM areas. Reducing the number of subjects each teacher is required to teach allows them to concentrate on certain disciplines, such as STEM subjects, and dedicate more time to developing effective teaching methods and promoting a stimulating learning environment that encourages students to pursue these fields. In addition to technical training in STEM areas, pedagogical training is crucial to ensure that teachers can accommodate different learning needs in the classroom (for more details, see Section 3.2.1).

1.2.4. Strengthen linkages between higher education curricula and the needs of the semiconductor industry, including through enhanced co‑ordination with the domestic industry and by fostering international partnerships

The semiconductor industry employs a variety of profiles, for example electronic and electrical engineering, industrial engineering, chemical engineering or mechatronics. Introducing semiconductor-focused degrees at the bachelor’s and master’s levels could contribute to reducing semiconductor skills shortages, and the degree in semiconductor engineering established at the National Technological Institute of Mexico (Tecnológico Nacional de México, TecNM) and similar initiatives in other universities are important steps in this direction. Although higher education institutions have begun implementing programmes in semiconductor-related disciplines, Mexico would benefit from greater alignment between higher education curricula and the needs of the industry. For example, industry stakeholders interviewed for this report suggested that some students enrolling in semiconductor-related degrees lacked the foundational STEM skills and called for more preparatory or introductory (propaedeutic) courses to bridge the gap between secondary and tertiary education.

Mexico’s Working Committee for the Analysis of the Semiconductor Industry (Comité de Trabajo para el Análisis de la Industria de Semiconductores), facilitated by CANIETI and the United States Embassy, is one model for seeking industry engagement for the development of curricula that meet the skills needed by Mexico’s semiconductor industry. Mexico would benefit from continuing to incentivise collaboration with foreign higher education institutions, including through the establishment of joint programmes of study in collaboration amongst two (or more) institutions that can provide specialised semiconductor courses. The Community College Initiative (CCI), which was piloted in 2024 in collaboration with Mesa Community College in Arizona, United States, provides an example of cross-border collaboration to help develop specialised semiconductor skills. International partnerships between higher education institutions should also encompass training for professors, including through dedicated teacher exchange programmes.

Scholarships specifically targeting semiconductor training, such as the Secretariat of Science, Humanities, Technology and Innovation (SECIHTI) scholarship for specialising in semiconductors at TecNM, can help incentivise students to pursue a degree – and eventually a career – in semiconductors. A formal framework between academia and industry aimed at promoting internships (and apprenticeships) in semiconductor firms in Mexico would help ensure that graduates are better prepared to start working in the industry. The aforementioned initiatives are described in more detail in Section 3.2.1.

1.2.5. Streamline and support the institutions and procedures involved in higher education accreditation and evaluation

The accreditation of higher education institutions helps ensure that these institutions adhere to quality standards, maintain the trust of students and employers, and can update their curricula to develop a workforce with the necessary skills, including the skills required by the semiconductor industry. Although the 2021 General Law on Higher Education (Ley General de Educación Superior, LGES) intended to simplify and streamline these accreditation and evaluation processes, evidence suggests that it has not been wholly successful. The processes remain complex and quality assurance can be uneven.

Therefore, Mexico should go further and faster to streamline the wide range of governmental and non‑governmental accreditation entities. Then, it would be important to establish a national framework for technical assistance and capacity building for these accreditation entities, which would aim to reduce the fragmentation and regional disparities which can arise in the accreditation process.

1.2.6. Expand efforts to encourage female participation in STEM, including through the NiñaSTEM programme and Modo STEM initiative

Mexico has the highest proportion of female students graduating from tertiary education in engineering and related fields amongst selected Latin American countries. However, only 10% of female students graduate in these fields compared to 27% of male students. This is additional evidence that Mexico’s pipeline of STEM skills could be expanded further in order to develop its semiconductor workforce.

Ongoing efforts to encourage female participation in STEM courses (through initiatives such as NiñaSTEM and Modo STEM) are essential to grow the potential pool of STEM talent. This includes, for example, continuing the efforts to change gender-specific expectations about professions by fostering female role models in STEM (for example, STEM Mentors) or establishing awards to enhance the visibility of women in STEM. In addition, the new MakerWomenSTEM pilot at the Monterrey Institute of Technology and Higher Education (Tecnológico de Monterrey) trains mentors and establishes inclusive and accessible spaces for STEM education. After assessing the pilot’s impact, Mexico could consider scaling up the programme to more tertiary education institutions across the country.

In addition, expanding access to childcare and early education and lengthening school schedules during primary education, as recommended in recent OECD Economic Surveys of Mexico, would also create the conditions for more women to complete their studies and participate in the formal labour market, including in STEM professions (OECD, 2024[1]; OECD, forthcoming[2]).

1.2.7. Involve research centres in the development of semiconductor curricula

As explained in Recommendation 1.2.4, it is important for higher education curricula to be informed by the skills needs of the semiconductor industry. Similarly, Mexico should also ensure that its curricula reflect the needs and expertise of its semiconductor-related research centres. Research centres that focus on semiconductor or related technologies and offer advanced training also play an important role in producing talent and helping to inform government agencies and higher education institutions about the skills needed for advanced semiconductor studies. Examples of these research centres include INAOE, CIMAV, CIDESI, CIATEQ and COMIMSA – which collaborate on initiatives relating to advanced materials, semiconductors and integrated circuits through the iSensMEX platform – as well as others such as CINVESTAV.2

The recently introduced engineering and postgraduate programmes in semiconductors at TecNM (see also Recommendation 1.2.4) involving research institutes such as CINVESTAV and INAOE are an example of collaboration between research centres and higher education institutions with the aim of enhancing the provision of semiconductor skills. For more details, see Sections 3.1.5 and 3.2.1.

The National Council for Humanities, Science and Technology (Consejo Nacional de Humanidades, Ciencias y Tecnologías, CONAHCYT) was replaced by the new SECIHTI in January 2025. This is the first time that science, technology and innovation policy will be represented at the secretariat-level in Mexico, which is expected to further enhance connections between research centres and industry in developing curricula (notably STEM programmes) at the upper secondary and tertiary education levels, including VET. This approach would help ensure that advanced studies and research focused on semiconductors have an adequate talent pipeline.

1.2.8. Improve the content and increase the appeal of VET with a focus on semiconductor skills and occupations

Semiconductor manufacturing, and in particular assembly, testing and packaging (ATP), requires considerable technical skills, such as molding, dicing, wave soldering, swaging, lamination and technical occupations that are also in high demand from other industries. Enhancing the provision and quality of vocational training, with a focus on these skills and occupations, would help alleviate pressures in an otherwise tight labour market for technical skills. According to OECD analysis, the manufacturing of motor vehicle parts is the closest “neighbour” to the skills needed by the semiconductor and other electronics industry. For more details see Section 2.3.2.

In addition to technical skills, transversal and socio-emotional skills (for example, problem solving, communication, management, operations, security management) are extremely important for a wide range of sectors. Therefore, gearing the VET system towards these skills could also enhance overall Mexican talent and contribute to the broader economy.

The initiative by the Secretariat of Public Education (Secretaría de Educación Pública, SEP) to implement new technical curricula for the 2024/2025 academic year focusing on microelectronics and semiconductors, amongst others, was an important step in the right direction. The initiative included consultations with stakeholders through dedicated fora to ensure the relevance and effectiveness of the programme. However, as outlined in Section 3.2.1, Mexico’s VET system struggles to attract students, despite being offered in various formats and through many institutions. Therefore, Mexico should consider expanding the pathways for VET students to be able to pursue university-level tertiary education, as this would increase the appeal of the vocational pathway.

1.2.9. Further enhance co‑ordination with industry to ensure that VET meets the needs of the semiconductor industry, including through stronger incentives for dual school-industry training programmes

Dual VET programmes – through which students gain both a theoretical grounding in the classroom and practical on-the-job experience through work placements – exist at both the upper secondary and tertiary levels and last for three years. Firms typically bear the cost of their dual programme students, including relevant equipment and trainee pay. To incentivise more firms to join the programme, the federal government has introduced scholarships. Moreover, in 2022, Intel Mexico and the Secretariat of Economy signed a collaboration agreement to share knowledge and best practices and train local talent in semiconductors. Another programme, Young People Building the Future (Jóvenes Construyendo el Futuro, JCF), supports 18-29 year-olds not in education or work to gain professional experience and receive training in a work environment.

The relatively high share of vocational programmes’ funding from the private sector (21%) also denotes important industry engagement. Nevertheless, VET in Mexico is currently underfunded relative to other forms of education, resulting in lower student enrolment, insufficient and outdated equipment and a shortage of sufficiently trained teachers. Further enhancing dual VET programmes, with a focus on semiconductor skills would include incentivising firms to engage more actively in dual programmes through support for post-training engagement or hiring of former students.

Enhanced co‑ordination with industry and other relevant stakeholders, through the National Council for Standardisation and Certification of Labour Competencies (Consejo Nacional de Normalización y Certificación de Competencias Laborales, CONOCER) that brings together employers and trade unions, could help inform updates to curricula and the design of new specific standards focused on semiconductor skills needs. As with higher education (see Recommendation 1.2.4), the standards and curricula for VET should be reviewed regularly to ensure they remain up to date and address the needs of the rapidly evolving semiconductor industry. For more details on Mexico’s VET system, its initiatives such as JCF and the role of CONOCER, see Section 3.2.1.

1.2.10. Support the development of VET trainers to keep abreast of the latest industry developments by facilitating the involvement of industry experts in VET

Further collaboration with industry would also be important to ensure that trainers in all VET programmes (including dual programmes) keep abreast of the latest developments in their field. Semiconductor technology evolves rapidly; thus, it is imperative that trainers are regularly updated through continuous engagement with the industry. It would therefore be important to facilitate the involvement of semiconductor industry experts in the provision of vocational training at both private and public institutions, for example through part-time contracts and providing flexible pathways for teaching qualifications and the development of pedagogical skills that industry experts can sometimes lack.

Dedicated short programmes for VET trainers in higher education institutions and research centres focused on semiconductor education would also help trainers remain up to date on advances in semiconductor technology and pedagogical techniques (for more details, see Section 3.2.1).

1.2.11. Focus on improving English-language skills in the workforce by strengthening English courses at all levels of education, including VET

Knowledge of the English-language is a particularly important skill for the semiconductor industry. Instructions for operating the equipment are often in English and so is the corresponding training. Interactions with international suppliers and customers are often conducted in English. Efforts to further develop the four English-language skills (writing, speaking, reading and listening) can raise capabilities of the Mexican labour force.

Mexico’s 2009 National Programme for English in Basic Education (Programa Nacional de Inglés en Educación Básica, PNIEB) aimed to start teaching English to pre-school children. In practice, however, many Mexican students begin studying English relatively late, since it is only mandatory to learn English from lower secondary education. As a result, English proficiency in Mexico lags behind other countries and Mexico’s English Proficiency Index (EPI) score is below the average of OECD Members (OECD, forthcoming[2]).

Therefore, Mexico should significantly improve the level of English-language skills in the workforce, by strengthening English courses at all levels of education and vocational training, including lifelong learning programmes. For tertiary education and secondary vocational training, it would be important to encourage exchange and dual programmes with foreign education institutions and facilitate the engagement of native English-speaking teachers in local institutions. The partnership between the SEP and Arizona State University (ASU), which intends to teach a technical English-language course related to semiconductors, is an example of such an initiative (see “University-level tertiary education” in Section 3.2.1). The expansion of technical courses in English, notably in vocational training programmes, would be an additional important step to raise the level of English-language skills in the semiconductor workforce. Improved teacher training and supporting teachers’ professional development (see also Recommendation 1.2.3) are another means of raising the level of English-language skills.

1.2.12. Promote “brain circulation” and mitigate “brain drain” by focusing on research and innovation

While developing talent is key, addressing the “brain drain” challenge described in “Net migration” in Section 2.3.3 should also be a high priority. This is particularly important given the fierce competition for semiconductor talent globally. Ensuring that talented individuals remain in Mexico or return from overseas with additional skills (“brain circulation”) to contribute to the local semiconductor ecosystem – for example, as workers, researchers or trainers – requires a well-designed strategy to promote Mexico as a good and safe country in which to live and work.

Effective and swift measures to enhance security, transport infrastructure and services, connectivity, education, childcare and healthcare, all in close proximity to the designated areas for semiconductor investments, would to help attract and retain workers.

SECIHTI requires scholarship recipients who studied or completed a stay abroad to reside in Mexico for at least six months after their studies, engaging in professional activities or collaborating with public and private entities. However, one of the main obstacles to the success of programmes aimed at bringing back talent is the lack of adequate long-term employment for those returning. Fostering research and innovation activities in the semiconductor ecosystem, including in public institutions and in industry, can provide new opportunities for highly qualified individuals willing to come back to Mexico. See Section 1.3 for more information on research and innovation.

Strategies to promote “brain circulation”, such as those developed by the Global Network Mx and the Consortium of Higher Education Institutions for the Educational Development of Mexican People Abroad (CIESDEMEX), would further tap into the potential of Mexican talent abroad for the benefit of Mexico. These strategies include engaging with the Mexican diaspora and promoting international collaboration with foreign universities and industry.

1.3. Realise the potential of local semiconductor research and innovation

Research and innovation are a cornerstone of the semiconductor ecosystem, including for suppliers of inputs to semiconductor manufacturing. While Mexico has several centres conducting research on semiconductors or related fields, further strengthening the innovation system for semiconductors could add considerable value to the local semiconductor industry. Specific actions include continuing to strengthen academia-industry linkages, facilitating the acquisition of specialised equipment and incentivising the commercialisation of innovation.

1.3.1. Facilitate the acquisition of specialised equipment through more flexible budgeting cycles and expediting imports

Research centres face several challenges to access specialised equipment and materials for their laboratories. One challenge relates to the budgeting process for public research centres, which typically runs on an annual cycle. Allowing research centres to carry over funding from one year to the next or introducing multi-annual budgeting could help these centres acquire and maintain specialised machinery and equipment that often takes considerable time to obtain (for example, acquiring specialised equipment reportedly takes at least six months) and make other longer-term investments.

Another challenge is the administrative bottlenecks that Mexican research centres and universities face when trying to acquire specialised equipment. Mexico could consider facilitating customs clearances for specialised semiconductor equipment. Moreover, equipment used for non-commercial activities, such as research and education, is currently subject to value-added and import taxes. Mexico could consider exempting certified research centres focusing on advanced semiconductor research from import taxes, to support the acquisition of expensive high-technology (high-tech) semiconductor equipment needed for research and educational purposes.

Mexico would need to guard against the exploitation of this type of incentive by industry or other commercial actors. For example, the United Kingdom and European Union require the retrospective payment of import duties if equipment is transferred to ineligible entities (see Section 3.2.1 for additional details).

Other specific measures that could help ensure that the necessary equipment is available for semiconductor research include, for example, encouraging joint projects between research centres and industry, such as agreements to share facilities and equipment therein, or joint industry-academia mechanisms to procure new equipment.

Some upper secondary and tertiary education institutions face very similar barriers to acquiring specialised equipment, which hinders their ability to provide training in semiconductor and semiconductor-related fields to their students. The proposed solutions to support research centres to acquire the necessary equipment would also apply to these education institutions. Partnerships with industry to promote the lending or donation of legacy semiconductor equipment would be particularly relevant in this context, significantly reducing equipment costs for education institutions, while still providing adequate equipment for training students.

1.3.2. Incentivise the commercialisation of innovation, including by allowing public sector researchers to partially retain IP rights on their inventions

Further supporting the commercialisation of innovation could help develop the ecosystem of suppliers to semiconductor manufacturing and strengthen the linkages between foreign and domestic industry. Mexican patenting activity in semiconductor technology remains limited. Based on the most recent patent data, only 12 Patent Cooperation Treaty (PCT) patents – a proxy for high-potential patents – were filed in Mexico between 2001 and 2010 while 17 PCT patents were filed between 2011 and 2023. Additionally, research and development (R&D) investment – a proxy for innovation inputs – has declined in the last decade and remains substantially below the OECD average (see Section 2.2.3 for further details).

In 2023, Mexico introduced the General Law on Humanities, Science, Technology, and Innovation (Ley General en Materia de Humanidades, Ciencias, Tecnologías e Innovación, LGHCTI) that reformed the innovation system. Amongst other changes, the LGHCTI legislated that IP rights deriving from research activities funded by public funds should be retained by the public sector (at the time CONAHCYT; now its successor SECIHTI). See Section 3.2.1 for additional details.

However, Mexico could consider improving this regulatory framework affecting innovation activity and ensure that the incentives for IP development are adequate to promote innovation in the rapidly evolving semiconductor and related fields. This would include, for example, allowing researchers in public universities and research centres to be able to retain part of the IP rights on their inventions, in line with international best practice, to incentivise their innovative activities.

1.3.3. Further strengthen academia-industry linkages and facilitate the involvement of researchers in both public and private sector activity

The 2023 LGHCTI also includes provisions intended to promote partnerships between public sector researchers and private sector entities, under the co‑ordination of SECIHTI and in line with national priorities. The objective is to ensure that research outputs contribute to public welfare rather than solely benefitting private interests. However, it would be important to assess whether the LGHCTI – by requiring SECIHTI to approve all research collaborations between public institutions and the private sector – risks constraining the ability of individual public sector researchers to enter partnerships with the semiconductor industry, and consider any potential implications for Mexican semiconductor innovation outcomes.

Facilitating the engagement of researchers in relevant private sector activity, while mitigating risks of conflicts of interest, could help further enhance industry-research collaboration, foster semiconductor‑related basic and applied research and drive innovation. Such measures could also support a more impactful public research sector and facilitate knowledge transfer on semiconductors. See Section 3.2.1 for additional details.

At the sub-national level, the 2022 Jalisco Tech Hub Act provides incentives for innovation and advancing the local high-tech ecosystem. The act promotes the triple helix model of innovation, based on collaboration between the government, academia and industry. Mexico should monitor its progress and implementation to identify the potential to scale up this approach to the federal level.

Facilitating the involvement of researchers in the semiconductor industry, for example through joint projects between academia and industry, would also help align research to industry needs. The creation of a national-level academia-industry research framework for semiconductors with well-defined IP ownership provisions would help boost innovation in semiconductor and related technologies (see also Recommendation 1.3.2).

1.4. Improve the enabling infrastructure required for further semiconductor investments

Ensuring that the necessary infrastructure is in place to accommodate the expansion of Mexico’s semiconductor ecosystem requires reducing road transportation costs, continued investment in other transportation infrastructure, as well as incentivising firms to adopt renewable energy and water management solutions.

1.4.1. Tackle road insecurity to reduce the insurance and security costs that firms face with road transportation

Transport infrastructure is particularly important for highly traded products such as semiconductors. Some of the material inputs, outputs and machinery are also delicate and require smooth transportation. Therefore, Mexico should continue efforts to invest in infrastructure, by connecting major ports (for example, the development of Salina Cruz in the state of Oaxaca (Pacific Ocean) and Coatzacoalcos in the state of Veracruz (Atlantic Ocean) in the context of the Interoceanic Corridor of the Isthmus of Tehuantepec, and airports (for example, upgrades to the Felipe Ángeles International Airport) with knowledge centres and key industrial parks currently hosting, or with the potential to host, semiconductor facilities (current locations include Aguascalientes, Guadalajara, Mexicali and Tijuana).

Despite these investments in transport infrastructure, firms operating in Mexico report high security and insurance costs to ensure that cargo transported by road reaches its intended destination safely and securely. Mexico should consider bold steps towards reducing the costs that firms face with road transportation, including by taking swift action to address road insecurity.

Data on cargo security in Mexico are fragmented. To develop a good understanding of the security implications for firms, it would be necessary to combine cargo theft data with information on costs incurred by firms on insurance and security services. Efforts to increase the collection of data on cargo security could help inform swift policy action to address this important concern. Enhancing the rail transport infrastructure could provide an efficient and safer alternative to road transport (see “Road transportation” in Section 3.2.2 for additional details).

1.4.2. Incentivise semiconductor and other firms to invest in cutting-edge technology for water (and wastewater) management and promote firms’ integration as recyclers in water network systems

Water is one of the most critical inputs for semiconductor production. However, water is a scarce commodity in certain parts of Mexico, notably in the northern regions that host a considerable share of industrial activity. Mexico should consider measures to ensure that water availability meets the needs of an expanding semiconductor industry. Moreover, efforts to increase wastewater treatment – intended to address increased volumes of wastewater and growing demand for treated water – would help improve water quality for both private and industrial use.

Efforts to encourage firms in all industries to make use of cutting-edge technology for water conservation and recycling, for example by facilitating the integration of firms in the water network as both users but also recyclers of clean water, would help ensure longer-term sustainability and attract capital investment into water infrastructure. Skyworks Solutions – a semiconductor firm – opened a new wastewater treatment plant in Baja California in October 2024 to recycle city wastewater for use in its production processes. Partnerships between a firm and a municipality to help address water challenges also exist in other economies. For example, the Taiwan Semiconductor Manufacturing Company is collaborating with municipalities in the south of Chinese Taipei near Tainan City to operate an industrial wastewater reclamation plant, with the aim of increasing water supply for semiconductor manufacturing and reducing the pressure on local water sources.

Better management of national water resources would also benefit from more and timely data on water availability, consumption and distribution (notably on leaks and inefficiencies), thus supporting the actions of the National Water Commission (Comisión Nacional del Agua, CONAGUA). Additionally, the regulatory environment for water production, sanitation and distribution in Mexico is fragmented across both national and subnational governments, so water governance in Mexico could benefit from a stronger mandate for CONAGUA. See “Water” in Section 3.2.2 for additional details.

1.4.3. Incentivise private investment in renewable energy, including by clarifying and streamlining the power generation permit application process and facilitating energy auto-production by semiconductor and other firms

Energy is another key input to semiconductor manufacturing, which can be highly energy intensive. While energy provision in Mexico overall seems to meet the industry’s needs, efforts to expand energy supply should focus on renewable energy sources such as solar. In addition to contributing to Mexico’s recent commitment to reach net-zero greenhouse gas emissions by 2050, renewable energy is increasingly a consideration for semiconductor firms as part of their global environmental, social and governance goals. Therefore, enhancing efforts towards renewable energy would increase the attractiveness of Mexico as a destination for semiconductor investment.

Mexico should strengthen its commitment and efforts to increase its renewable energy capacity, notably in solar photovoltaic energy generation. At the federal level, the new Electricity Sector Development Plan (Plan de Desarrollo del Sector Eléctrico, PLADESE), launched in October 2025, and the National Agrivoltaic Programme (Programa Nacional Agrovoltáico), launched in 2023, are signs of Mexico’s sustainable development and climate change commitments and outline areas of improvement for the Mexican energy grid. Meeting the goals of PLADESE would help address some of the most prominent challenges, while prioritising renewable energy. For example, electricity transmission infrastructure requires additional investment and the electricity distribution system could be made more efficient. Improvements in electricity access would also be important, notably in terms of the cost of connecting to distribution networks, which is under the responsibility of firms or industrial parks and which can be considerable. At the sub-national level, various states have initiatives to support the energy transition, such as the Plan Sonora (see also Section 3.1.3).

Mobilising private capital to support the energy transition is critical. The recent OECD Economic Survey highlights the importance of an independent regulator to support private investment in the sector by promoting competition and ensuring a level playing field between public and private actors. One way to welcome new players into the market would be to institute transparent and predictable procedures for granting renewable energy generation permits and handling appeals (OECD, forthcoming[2]). Furthermore, the power generation permit application process could be streamlined to expedite decisions and facilitate entry into the power generation market. Mexico should also assess whether the responsibility for connecting designated industrial areas to the grid should remain under private customers, or whether there is a greater role for federal or state agencies to play. Incentives for firms to become auto-producers and generate their own energy (for example, by reducing fixed costs) could help further increase the share of renewable energy used by the industrial sector. For more details, see “Energy” in Section 3.2.2.

Finally, Mexico should step up its efforts to integrate all regions, including Baja California (home to a semiconductors and electronics cluster), into a national grid. This would help the economy move towards an increasingly efficient and resilient management of energy supply, which would also benefit semiconductor firms.

1.5. Support semiconductor firms to integrate global value chains

As explained in the earlier sections of this chapter, Mexico has a large potential pool of semiconductor talent. It also has an innovation ecosystem with research centres focusing on semiconductor and related technologies and a presence in design and back-end manufacturing segments of the semiconductor value chain. Moreover, semiconductor demand in Mexico is driven by important computer equipment and automotive industries, among other semiconductor-using industries.

However, Mexico’s current electronics sector is mostly limited to the Maquiladora Export Industry (Industria Maquiladora de Exportación, IME), which acts as a relatively low value-added contractor to transform imported products for re-export, with only a few firms in the semiconductor industry, as described in Chapter 2. Therefore, Mexico would benefit from establishing an environment conducive to developing and attracting new foreign and domestic players in the semiconductor industry. Together with investment in talent, research and infrastructure outlined in Sections 1.2, 1.3 and 1.4 respectively, attracting foreign direct investment and facilitating investment could help upgrade the Mexican electronics sector.

1.5.1. Facilitate foreign investment by finalising the integration of information relevant for semiconductors in the digital one-stop shop

Mexico’s digital one-stop shop for investors (Ventanilla Única para Inversionistas, VUIMX) identifies semiconductors as a strategic industry and efforts are being made to integrate information relevant for semiconductors investments into the one-stop shop. In addition to this federal guidance on foreign investment, the VUIMX also provides links to the relevant Ventanilla platforms available for each state.

Finalising the integration of such information, including the details on all federal and sub-national permits needed for semiconductor investment and manufacturing operations would be extremely helpful. The same VUIMX platform should also connect investors to the one-stop shop for foreign trade (Ventanilla Única de Comercio Exterior Mexicana, VUCEM), which covers a wide range of requirements from customs through to special permits for the trade of certain goods that fall under the responsibility of other parts of the administration (for example, environmental and health permits for certain chemicals) (for more details, see Section 3.2.3).

1.5.2. Facilitate trade of relevant semiconductor inputs through a customs programme for a pre-determined list of key inputs and through electronic customs scans

Semiconductors require a complex combination of inputs, most of them imported. Industry stakeholders consulted as part of this report cited two related challenges. First, customs procedures for semiconductor inputs can be time-consuming and face delays. Second, many semiconductor inputs are fragile (such as specialised equipment) or temperature- or light-sensitive (such as certain chemicals). A fast-track customs programme, building on the Authorised Economic Operator (AEO) programme, with pre-determined key semiconductor-related inputs, could reduce the time to clear customs and reduce the risks of haphazard handling of fragile semiconductor materials and sensitive inputs during inspections at the border customs. Key semiconductor inputs are listed in Annex E.

Enhancing the capability of customs authorities to operate around the clock, notably in key ports, could further reduce time to clear cargo to and from relevant markets in East Asia and Europe. Facilitating customs verification at the border and investing in technology to allow for electronic scans instead of physical checks (which might render sensitive materials unusable) would help Mexican semiconductor firms further integrate into the GVC.

Efforts to facilitate trade with neighbouring countries could also be envisaged, for example, through customs checks at the final arrival or initial departure location instead of at the border, building on the AEO programme and in line with trade facilitation and security and enforcement provisions in existing bilateral and multilateral trade deals (see Section 3.2.3 for additional details).

References

[1] OECD (2024), OECD Economic Surveys: Mexico 2024, OECD Publishing, Paris, https://doi.org/10.1787/b8d974db-en.

[2] OECD (forthcoming), OECD Economic Surveys: Mexico 2026, OECD Publishing, Paris.

Notes

← 1.  PISA is a periodic testing programme on student performance that generally compares 15-year-old students’ academic performance across countries. According to the Secretariat of Public Education, PISA does not fully align with national standards for evaluating educational outcomes. PISA data are nevertheless used as a reference in this document to allow for comparison across countries (due to its uniform testing approach and data collection protocols) and to support meaningful policy recommendations. See https://www.oecd.org/pisa for additional details.

← 2.  Instituto Nacional de Astrofísica, Óptica y Electrónica (INAOE), Centro de Investigación en Materiales Avanzados (CIMAV), Centro de Ingeniería y Desarrollo Industrial (CIDESI), Centro de Tecnología Avanzada (CIATEQ), Corporación Mexicana de Investigación en Materiales (COMIMSA) and Centro de Investigación y de Estudios Avanzados del Instituto Politécnico Nacional (CINVESTAV).