The strategy of “fishing” for any industry is over. The Government of the State of Chihuahua has deployed the “harpoon” to target large sectors such as eVTOL (drones), electric vehicles, microprocessors, and robotics. Ulises Fernández, Secretary of Innovation and Economic Development (SIDE) of Chihuahua, recently revealed this approach. He explained that the government has changed its approach to attracting investments to the Mexican state of Chihuahua and is now focusing on new technologies.
Secretary Fernández listed the industries they seek to establish, leveraging the engineering talent, electronics expertise in Juárez, and aerospace vocation in Chihuahua, among other advantages. The investments to the Mexican state of Chihuahua that the State is seeking to attract are in the following categories:
- eVTOL (VTOL): These are vertical takeoff and landing aircraft, similar to drones. They could be produced in Chihuahua City.
- Electric Vehicles (Electromobility): This includes manufacturing batteries or establishing an assembly plant for a company, particularly in Juárez and the capital.
- Semiconductors: Producing more components for this crucial industry and participating in more processes. Key location: Ciudad Juárez.
- Advanced Manufacturing: Using robots for manufacturing.
- Software Development: Research and development, innovation, design, and engineering.
- Artificial Intelligence (AI): Leveraging the semiconductor and electronics industries in Juárez.
- Medical Devices: Important due to gas EtO (ethylene oxide) sterilizers.
“We are no longer fishing; we are going with a harpoon for the industries we want.”
“The focus of economic development is precision. We are not casting a wide net and looking for many leads; instead, we prioritize specific capabilities and future areas we want to develop in these sectors, such as electromobility and semiconductors.”
He specifically listed:
Aerospace Industry: “In particular processes with aerospace structures using new materials, composites, 3D printing, and converting commercial aircraft to cargo.”
Electromobility: “Batteries, electric vehicle assembly.”
Medical Devices: “We aim to attract investment in EtO gas sterilization technology to help more complex Class 3 medical devices, which remain in the body for more than 72 hours, to operate and develop in the state.”
“We call these ‘cold prospects.’ It’s not just casting a fishing line and seeing what we catch. No, it’s about targeting specific companies and activities within these value chains we want to develop.”
“An important aspect is not just attracting investment but developing businesses and strengthening the local ecosystem of Chihuahua-based companies, ensuring that Chihuahuan companies can participate directly in higher value and more complex supply chain processes. We are working with incentive programs to achieve these goals.”
Nearshoring
With the relocating or “nearshoring” of supply chains, “we are seeing a deepening of value chains in four sectors: automotive, aerospace, electrical-electronic, and medical devices.”
“We are observing a shift from automotive to electromobility, as seen with ZF and its electric powertrain, and an increasing presence of companies like GKN in aerospace.”
“ED announced the establishment of a new process in gas sterilization, which consolidates medical devices.”
“There is significant growth in the field of artificial intelligence, such as the presence of a major Taiwanese server cluster in Ciudad Juárez.”
“Nearshoring is a new wave; it’s not a new concept, but we are leveraging it to attract investment and processes that align with the productive transformation we seek in these consolidated sectors, including electromobility, semiconductors, advanced manufacturing (robotic factories), software development, and innovation.”
Unleash Your Growth Potential:
Attract Foreign Direct Investment (FDI)
Learn how our proven strategies bring international capital to your organization. Schedule a free consultation today to discuss your unique needs and discover how we can unlock your growth potential.
eVTOL Aircraft or Drones in Chihuahua
“We are working to bring a significant industry to Chihuahua City, called eVTOL, which are vertical takeoff and landing aircraft, or drones as they are commonly known.”
“We are focusing on attracting this industry, whether it will be an aircraft or a drone that will take off from Chihuahua after being manufactured here.”
“It’s about surfing the wave and understanding trends to position ourselves accordingly, leveraging our vocations and experience.”
Semiconductors
“We have the foundations to do it. We have a robust electrical-electronic cluster that is nationally and internationally recognized. We have the capacity and conditions to play a more significant role in the semiconductor chain.”
“When we talk about semiconductors, we are not bringing a chip factory here, but there are areas where we can be extremely competitive.”
“These processes include ATP, which stands for ‘Assembly, Test, and Packaging’ of semiconductors.”
“We have design opportunities similar to what Jalisco has achieved, thanks to Ciudad Juárez and the number of Taiwanese companies specializing in chip manufacturing.”
“We can create components and equipment for chips.”
“We are directing investment promotion efforts towards semiconductors. We have two open fronts to strengthen the talent base, working with the University of Arizona on a project to enhance faculty knowledge transfer and coordination with the Taiwanese academic cluster.”
Companies Already Know Chihuahua
He affirmed that “companies are already aware of the competitive advantages offered by the state of Chihuahua.” “While it may not be considered new investment, there are expansions with more technological industries.”
In this administration, they have achieved:
- 120 projects of new investments or expansions.
- 4 billion dollars.
Energy
“Energetic uncertainty is a broader issue; however, we have coordinated well with federal entities such as the CFE (Federal Electricity Commission).”
“The governor announced the creation of the State Energy Development Agency (AEDE). Coordination with the Commission has been crucial over the past year and a half.”
“We achieved the expansion of the Terranova substation in Juárez and the Chihuahua Norte substation to release 300 additional megawatts (MW) and make 100 MW available. This provides certainty for the next two and a half years.”
Innovation
“IMCO ranks Chihuahua number 1 in the sub-index of economic innovation. Chihuahua excels in exports, economic diversification, foreign direct investment, and the generation and development of patents.”
“Chihuahua City ranks as the most innovative city in the urban competitiveness index.”
Talent
“What’s crucial is not just having the quantity of talent but ensuring it has the competencies and skills demanded by the industry.”
“We are working closely with the industry to understand current and future requirements and link them to academic programs. We utilize training provided by Icatech and Cenaltec to help graduates adapt to new industries.”
In conclusion, the strategic shift by the Government of the State of Chihuahua towards targeted investments highlights a commitment to positioning the region as a leader in advanced technologies and innovative industries. By focusing on sectors such as eVTOL, electromobility, semiconductors, and artificial intelligence, the state aims to attract high-value investments to the Mexican state of Chihuahua. This proactive approach seeks to capitalize on existing strengths and fosters a robust local ecosystem that can support and grow these cutting-edge industries. As Chihuahua continues to enhance its infrastructure and talent pool, it is poised to become a significant player in the global market, driving economic development and technological advancement.
Don't Miss Out: Limited Spots Available for Free FDI Strategy Sessions
Foreign Direct Investment can fuel your organization's success. But competition is fierce. Secure your spot today for a free, no-obligation consultation with our FDI experts. Learn how to attract global investment and take your business to the next level.