Tijuana Consolidates the Electronic Hub in Mexico
Northern Mexico is an important hub for electronics manufacturing. With its strong infrastructure and competitive labor cost, the region is well-suited for international businesses seeking to produce electronic products.
Many leading electronics companies have opened plants in northern Mexico over the past decade and Tijuana has consolidated its leadership in this industry.
Electronics Manufacturing in Tijuana
Tijuana is the major TV screen manufacturer in Mexico with more than 19 million units per year. But TV manufacturing is just a fraction of the electronics industry in this border city in Baja California. Manufacturers in Tijuana also produce and manufacture the following:
- Audio and Video Equipment
- Consumer Electronics
- Communications and Medical Equipment
- Electrical Cables
- Precision Measurement
- Navigation, Control, and Optical Instruments
Moreover, the electronics industry in Tijuana clusters around 200 companies such as Panasonic, TE Manufacturing, Asteelflash, Samsung, NeoTech, Jabil, Eaton and Leviton. These companies manufacture a wide variety of electronics and employ around 60,000 people in Tijuana.
These companies often take advantage of government incentives and favorable trade agreements to reduce costs and maximize their return on investment. Also, to provide efficient production capabilities, these facilities are designed with modern safety protocols and quality assurance processes that ensure compliance with industry standards.
Monitors and TV screens were the most exported products in 2022. Last year, Tijuana exported US$8.5 billion worth of these two products, according to Data Mexico, the official website of the Mexican Government.
But electronics made in Tijuana are more than just TVs and monitors. Companies also exported US$929 million in cell phones, US$812 million in electrical devices to switch or protect circuits, US$614 million in electrical equipment to amplify sound, US$457 million in electrical cables and US$454 million in diodes, transistors and semiconductors. Automotive and aerospace electronics are also manufactured in Tijuana and they are an important component of this industry. Most of these products are exported to the U.S. and Canada.
Key Advantages of Investing in the Electronics Manufacturing Industry in Tijuana
By investing in Tijuana electronics manufacturing operations, businesses can benefit from low costs while still maintaining high levels of product quality. This makes the region an attractive destination for those looking to produce their products more efficiently and effectively.
Another competitive advantage Tijuana has is an educated workforce and most of them have some experience in electronics. Data Mexico shows 38.8% of the workforce are assemblers with expertise in the electronics sector. An additional 11.5% are supervisors in electronic products, 6% are support workers in the electronics industry, 1.6% are electronic engineers and 1% are technicians in electronics. Nowadays, Tijuana employs almost 260,000 people in manufacturing.
The competitive advantages Tijuana offers have resulted in investments and expansions. Many companies are actively seeking a site to start or increase operations in this border city. In fact, at least 30 new companies have moved their operations to Tijuana in the last 18 months, according to INDEX, a civil association representing manufacturers in Mexico. The future of electronics in Tijuana seems to be promising.
Nearshoring and Industrial Space in Tijuana
Moreover, the new nearshoring wave has attracted electronics manufacturers to the region willing to supply their products from Tijuana to the North American market. Most of the companies interested in Tijuana are from the U.S., Japan, China and South Korea. Also, these three countries are in the Top 10 investors in Tijuana along with the U.S.
Even though nearshoring has increased the demand for industrial space, Tijuana still has land available and developers are working to have buildings ready for the nearby future. To meet this high demand, the Economic and Industrial Development of Tijuana (DEITAC) recently announced that at least 17 real estate developers will invest US$635 million to expand the industrial buildings in Tijuana.
Interested in nearshoring or setting up your electronics manufacturing operations in Tijuana? We highly recommend speaking to one of our manufacturing industry experts and let us help you cut your production costs by 50%. Set up a consultation here.