Trump’s chip tariff poses mixed fortunes for Mexico’s growing semiconductor industry

The United States could enforce a 100% tariff connected microchip and semiconductor imports to promote concern successful U.S. manufacturing, President Donald Trump announced connected Wednesday. “But the bully news, for companies similar Apple, is if you’re gathering successful the United States oregon person committed to physique successful the United States, determination volition beryllium nary charge,” helium said from the Oval Office.

If introduced, a 100% sectoral tariff could interaction assorted sectors successful Mexico that export microchips oregon chip-dependent products to the United States. It could besides dilatory maturation successful Mexico’s chip-producing states, arsenic overseas companies with nearshoring plans look alternatively to motorboat operations successful the U.S.

A tech assemblage divided: Mexico’s spot makers optimistic, car manufacture wary

The United States was the main destination of Mexican semiconductor exports successful 2024, contributing US $466 cardinal oregon 75% of Mexico’s spot exports, according to accusation from Data México. 

The Mexican states with the highest income were:

• Baja California: $348 million
• Jalisco: $111 million
• Coahuila: $56.8 million
• Chihuahua: $32.5 million
• Nuevo León: $18 million

Chip producers specified arsenic Intel, Infineon, Skyworks and QSM Semiconductors already run successful the Mexican market, portion Qualcomm and different firms person announced concern plans aimed astatine benefiting from Mexico’s skilled workforce and proximity to the United States. 

In October 2024, the Taiwanese steadfast Foxconn announced plans to make a monolithic Nvidia “superchip” plant successful Guadalajara successful the Bajío authorities of Jalisco, wherever 70% of Mexico’s semiconductor manufacturing is based. 

That aforesaid month, the United States Embassy successful Mexico and Canieti presented a associated Master Plan for the Development of the Semiconductor Industry successful Mexico for 2024 to 2030, outlining aims to treble exports and jobs successful the industry.

Shortly after, successful November, electronics manufacturing services institution Flex announced plans to put $86 million successful a microchips probe halfway successful Guadalajara. 

Silicon Valley companies program to put US $890M successful Jalisco successful 2025

According to Miguel Ángel Landeros, president of the Mexican Business Council for Foreign Trade (Comce Occidente), companies producing chips successful Jalisco and elsewhere successful the state for U.S. firms volition not beryllium taxable to the caller tariffs. “[The tariff] is bully quality due to the fact that it gives america an vantage implicit different countries,” helium told the paper El Informador. 

In Landeros’s view, the caller tariff announcement — though airy connected details — does not interaction the Mexican semiconductor manufacture due to the fact that its superior clients are companies with a important accumulation footprint wrong the United States. “Mexico is analyzing the issue… and it is astir apt that we volition not beryllium affected; we could adjacent get benefits nether the umbrella of the USMCA pact itself.” 

Mexico’s automotive manufacture faces a antithetic challenge. While these companies besides export chiefly to the United States, galore of their electrical components whitethorn originate extracurricular Mexico, starring manufacture representatives to expect that the 100% semiconductor tariff volition use to their exports arsenic well.

The tariff volition “contribute to an summation successful accumulation costs,” said Padilla de León, the wide caput of the National Union of Auto Parts Industry Workers (SNTIA), successful an interrogation with the paper El Sol de México.

“The dozens of components that a conveyance carries, from physics cards to chips… arsenic they go much expensive, volition marque our vehicles little charismatic to the American market, due to the fact that they volition beryllium much expensive.”

With reports from La Silla Rota, Reuters, El Sol del Centro, El Informador and The Hill