Electronic and electromechanical sector companies intend to invest in Mexico as part of the relocation trend from Asia.
“There is approximately a first list of more than 400 companies that want to come to Mexico. Among them, for example, there are many from the electronics and electromechanical sectors, and they are the first ones that are being discussed and talked with to see where the best options are,” said Raquel Buenrostro, Mexico’s Secretary of Economy, last Tuesday.
The Organization for Economic Cooperation and Development (OECD) highlights that Mexico’s potential to become a high-growth economy is great, having gone from being highly dependent on oil in the early 1990s to developing as a manufacturing center, integrated into global value chains.
However, he notes that this potential remains unrealized and growth in recent decades has been low.
“Likewise, projects that have been developed in coordination with state governments are being implemented, as is the case of Plan Sonora, which will promote renewable energies, the lithium value chain, especially in relation to electromobility and the automotive industry, as well as the improvement of infrastructure that will strengthen its integration to the US economy through the mechanisms offered by the Treaty between Mexico, the United States and Canada (USMCA), added Buenrostro, in an appearance before the Senate of the Republic.
On August 16, 2022, the President of the United States signed the “Inflation Reduction Act”, which foresees an estimated investment of 437 billion dollars.
Of that amount, $369 billion would be directed to energy security and climate change (tax credits for clean energy and electric vehicles, among other measures), $64 billion to reduce health costs for families, and $4 billion for drought resilience in the western United States.
In addition, the law seeks to increase revenue by 737,000 million dollars to reduce the fiscal deficit, which considers a minimum tax of 15% on large corporations, among other measures.
“In terms of renewable energies what Mexico is doing is using more solar panels, the CFE is investing in hydroelectric plants to give them greater service, we also have the new investments to integrate the lithium chain, especially to take it to the electromobility part,” said Buenrostro.
Among the main companies in the sector in Mexico are: IMB. HP, Sony, Samsung, LG, Toshiba, Foxconn, Flextronics, Intel, Siemens and Daewoo.