Business · Companies · 18 hrs ago

Insecurity raises Mexico electronics industry costs by up to 25%

Insecurity raises Mexico electronics industry costs by up to 25%

Insecurity has raised costs for Mexico’s electronics industry by 15% to 25%, according to the country’s electronics industry chamber.

Companies spend on GPS and satellite tracking, security escorts and protecting goods, sites and staff.

Electronics shipments, including computers and servers, face theft risks as high-value equipment moves toward the borders.

Chip design is less exposed to physical risks than assembling computers and servers, one industry representative said.

Higher security costs could hold back new investment in electronics and semiconductor suppliers, alongside concerns about skilled workers and tax incentives.

The sector is benefiting from global demand for servers used in artificial intelligence and data centers, and industry leaders expect continued double-digit growth.

Improving security is seen as key to turning demand into investment and expanding local supply, though no specific government action or timeline was given.

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What people are saying

Enrique YamuniCanieti former president
They have reported increases of between 15 and 25 percent.
via El Financiero
There are investments on hold because of this issue, and that should concern us.
via El Financiero
Carlos RebellónCanieti national vice president for semiconductors
The electronics industry is being more affected than the semiconductor industry when it comes to security.
via El Financiero
Alfredo PachecoCanieti director general
Electronics became the country's number one export sector starting in May.
via El Financiero