Home Business-newBusiness Water is an attractive investment for Taiwanese companies in Southeast Mexico

Water is an attractive investment for Taiwanese companies in Southeast Mexico

by Yucatan Times
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In the relocation of factories that is happening around the world, southern Mexico is attractive for Taiwanese companies in the semiconductor sector.

“Companies that want to move to Mexico that are water-intensive are looking for regions of the country where they have more direct access to this resource, for example, the south of the country. We understand that the semiconductor industry, for example, is water-intensive, so Taiwanese companies are even considering locating in the south of the country,” commented Miriam Acuña, chief economist at Grupo Bursátil Mexicano (GBM).

He explained that as a result of the pandemic and the reconfiguration of supply chains to manufacture consumer goods, Taiwanese companies that manufacture Printed Circuit Boards (PCBs) have begun to move their production capacities out of China, to Asian countries such as Thailand, Vietnam Malaysia, and also Mexico.

PCBs are electronic circuit boards that connect electrical devices; They can be found in all types of equipment, including televisions, cell phones, computers, and mainly automobiles, they are a fundamental part of the semiconductor industry, he explained.

“Mexico came out the winner not only because of its proximity to the United States but also because the US government decided to invest heavily in the semiconductor industry to depend less on China,” commented the economist.

He detailed that the US inflation reduction law allocated around $50 billion to boost US competitiveness in semiconductors, including almost $40 billion in direct spending on chip production.

In addition, “the bill contains important provisions for Canada and Mexico to further deepen supply chains and integrate cross-border cooperation in this industry that is critical for the United States,” he said.

He detailed that the Mexican government is in talks with the Taiwanese industry to expand the PCB supply chain in Mexico, analyzing which segments it makes sense to have in the country and the key requirements for the Taiwanese PCB industry to relocate to the country.

He explained that the location of more productive warehouses in the south of the country will drive the trend of investing in infrastructure so that there is a direct connection with the East Coast of the United States.

“We have specifically heard the governor of Yucatán speak about it; that they are investing in Puerto Progreso so that the Peninsula is a direct connection, again, with the East Coast of the United States, which today we are not attacking directly. It is a process that will take time, but it can be solved that way,” concluded the GBM chief economist.

TYT Newsroom

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