Semiconductors - Mexico

Mexico

Revenue in the Semiconductors market is projected to reach US$47.12bn in 2024.
Integrated Circuits dominates the market with a projected market volume of US$45.12bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 10.27%, resulting in a market volume of US$76.83bn by 2029.
In global comparison, most revenue will be generated in China (US$177.80bn in 2024).

Definition:

Semiconductors are the crucial building blocks of all the electronics we see daily. The semiconductor industry comprises companies that design, fabricate, assemble, test, and supply semiconductors that are suitable for various applications. The semiconductor market represents the market size of the semiconductors used in various electronics applications.

Structure:

The semiconductor market is structured into four different markets based on the functionality of the semiconductors as follows:

The Discrete Semiconductors market represents the semiconductors that have a basic function and are mostly built using a single semiconductor device. These are further used in an application in conjunction with other semiconductors.
The Integrated Circuits market is the largest market and represents the semiconductors that have specific functionality. They generally consist of several basic semiconductor devices. This market is further divided into Analog Integrated Circuits, Logic Integrated Circuits, Memory Integrated Circuits, and Micro Integrated Circuits.
The Optoelectronics market represents the semiconductors that have functionality related to light.
The last market Sensors & Actuators represents the semiconductors that sense real-world factors and those that actuate other devices.

Additional Information:

The semiconductor market comprises revenue, revenue change, and key player market shares as the key performance indicators. Only the revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included and the revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B), and governments (B2G). Further definitions of the markets can be found on respective pages.

Key players in this market include Samsung, Intel, SK Hynix, Qualcomm, Micron, etc.,

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Market

Region

Region comparison

Currency

Analyst Opinion

The Semiconductors market in Mexico has been experiencing significant growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Mexican customers have shown a strong preference for semiconductors that offer high performance and energy efficiency. With the increasing demand for electronic devices such as smartphones, tablets, and wearable technology, there is a growing need for semiconductors that can handle complex tasks while consuming minimal power. This has led to a rise in the demand for advanced semiconductors in Mexico.

Trends in the market: One of the key trends in the Mexican semiconductors market is the increasing adoption of Internet of Things (IoT) technology. As more industries and households in Mexico embrace IoT, there is a growing demand for semiconductors that can connect devices and enable seamless communication. This trend is expected to continue driving the growth of the semiconductors market in Mexico. Another trend in the market is the shift towards automotive electronics. Mexico is one of the largest automotive manufacturing countries in the world, and as the automotive industry becomes more technologically advanced, the demand for semiconductors in this sector is increasing. Semiconductors are used in various automotive applications such as advanced driver-assistance systems (ADAS), infotainment systems, and electric vehicle components.

Local special circumstances: Mexico has a favorable business environment for the semiconductors market. The country has a strong manufacturing base and is known for its skilled labor force. Additionally, Mexico has established free trade agreements with several countries, which has made it an attractive destination for semiconductor manufacturers. This has led to the establishment of semiconductor manufacturing facilities in Mexico, further boosting the growth of the market.

Underlying macroeconomic factors: The growth of the semiconductors market in Mexico is also influenced by underlying macroeconomic factors. The Mexican economy has been growing steadily, and this has led to an increase in disposable income and consumer spending. As a result, there is a higher demand for electronic devices, which in turn drives the demand for semiconductors. Furthermore, the Mexican government has been actively promoting the development of the technology sector, including semiconductors. This includes providing incentives and support for research and development activities, as well as fostering partnerships between local and international companies. These initiatives have created a favorable environment for the growth of the semiconductors market in Mexico. In conclusion, the Semiconductors market in Mexico is experiencing significant growth due to customer preferences for high-performance and energy-efficient semiconductors, the adoption of IoT technology, the shift towards automotive electronics, the favorable business environment in Mexico, and the underlying macroeconomic factors. As these trends and factors continue to drive the market, the semiconductors industry in Mexico is expected to further expand in the coming years.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the money spent at the manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use the annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.