Businessmen from Taiwan arrive in Mexico; seek to invest in the microchip and PCB sector

Taiwan External Trade Development Council (TAITRA) carried out a mission to Mexico of 20 companies, three associations and a research center from the electrical, microchip and printed circuit board (PCB) sectors to hold business meetings for the growth and relocation of supply chains.

The trade relationship between Taiwan and Mexico is quite strong and has experienced significant growth in recent years. Both countries maintain diplomatic relations and have established bilateral agreements that promote mutual trade and investment.

Trade between Taiwan and Mexico is largely based on manufactured goods and technology. Taiwan exports electronics, machinery, telecommunications equipment, automobiles, and chemical products to Mexico. On the other hand, Mexico mainly exports agricultural products, oil, and manufactured goods such as automobiles, auto parts, and household appliances to Taiwan.

James Huang, president of TAITRA global, indicated that Mexico has a "golden opportunity" with the nearshoring phenomenon and belonging to the T-MEC to supply the largest market in the world: the United States and the Latin American region.

“Our mission in Mexico aims to create new strategic alliancesbetween nations, in particular, for smart manufacturing and electronics. We were invited to meet with the Ministry of Economy because there are possibilities to invest in Mexico, we are here to understand the industrial business environment. From a supply chain standpoint, Mexico is in a unique position to support the United States in the global restructuring of the supply chain. Taiwan is one of the global supply chain managers or administrators, we produce major parts and components, and also organize and manage supply chains for all over the world, including inter-ocean manufacturing and services and TFT LCD panels. Likewise, also motherboards to make all consumer goods, including semiconductors,

Direct investment plays an important role in the economic relationship between both countries. Taiwanese companies have invested in Mexico in sectors such as electronics, information technology, the automotive industry and manufacturing in general. Similarly, some Mexican companies have sought investment opportunities in Taiwan, especially in the information and communication technology sectors.

Both countries have also promoted cooperation in areas such as research and technological development. They have established collaboration agreements in science and technology, which has allowed the exchange of knowledge and the promotion of joint projects.

“We are understanding the business climate in Mexico and the government incentives, we also want to see if there are labor problems and personnel safety, as well as the electricity supply. We know that the Mexican government is working to offer opportunities to foreign investors through the restructuring of the supply chain, and we intend to invest more in the country."

With the support of Semudmex, the Taiwanese business delegation visited various industrial parks, consolidated and under development. In Hidalgo they held a meeting with Governor Julio Menchaca; in Puebla, a meeting with Governor Sergio Salomón; and the incentives that the Mexican government offers in the Interoceanic Corridor of the Isthmus of Tehuantepec (CIIT) to develop the south-southeast were also shared with the delegation. Present at this meeting were the Governor of Veracruz, Cuitláhuac García; the head of the Secretary of Energy of the government of Mexico, Rocío Nahle, and Vice Admiral Raymundo Morales.

Likewise, they met with business chambers related to such sectors, with large Mexican businessmen interested in investing in microchips, as well as with other Taiwanese companies that will share their experience after three decades of production in Mexico. Later, Taiwanese investors visited Ciudad Juárez, Chihuahua.

The Taiwanese delegation is made up of giants in the microchip and PCB industry, such as Foxconn, Unimicron, Invetec and Pegatron. To measure the relevance of these companies, it is enough to say that any cell phone, medical device, car, television or household appliance has components manufactured by one of these companies.

Without these small neurological systems that have Taiwan as the epicenter of their production, life today would be inconceivable. The semiconductor industry represents a market of 580,000 million dollars globally and that of PCBs is 82,000 million dollars .

Disruptions to supply chains caused by the pandemic, coupled with emerging geopolitical phenomena, have caused producers to seek to locate closer to their consumers.

In this regard, Mexico is working closely with the United States and Canada to develop microchip and PCB production chains in North America and take advantage of the full potential offered by the window of opportunity known as nearshoring .

This plan represents a turning point regarding the role that the country plays in global markets and its consolidation will make Mexico a strategic and indispensable player in the production of high technology. In the same way, it will bring to the country qualified and better paid jobs for the benefit of technicians and professionals.

TAITRA is Taiwan's leading trade promotion organization dedicated to helping Taiwanese companies expand internationally and establish business relationships abroad. TAITRA organizes and participates in various exhibitions, trade shows, and promotional events around the world to facilitate trade between Taiwan and other countries.

The organization also provides advisory and support services to foreign companies wishing to invest in Taiwan. It facilitates collaboration between Taiwanese and foreign companies, promotes technology transfer, and helps strengthen bilateral trade relations.