---
title: Semiconductor Back-End Packaging & Test
type: technology
url: "https://www.envisioning.com/research/forge/latam-ex-brazil__mx-semiconductor-packaging-nearshoring"
hub: forge
summary: "Mexico's semiconductor market reached $10.4B in 2024, growing at 6.5% CAGR with Baja California's Master Plan targeting chip packaging and test as nearshoring accelerates."
---

# Semiconductor Back-End Packaging & Test

Mexico's semiconductor market reached $10.4B in 2024, growing at 6.5% CAGR with Baja California's Master Plan targeting chip packaging and test as nearshoring accelerates.
- Technology Readiness Level: 7/9
- Impact: 4/5
- Investment: 5/5
Mexico is positioning itself as a critical node in the global semiconductor supply chain, focusing on back-end assembly, testing, and packaging (ATP) rather than front-end fabrication. The Sheinbaum Administration's January 2025 presidential decree introduced incentives for companies nearshoring semiconductor operations, while Baja California's Semiconductor Master Plan — developed with CANIETI and the US Embassy — targets packaging facilities near the US border. Qualcomm, Skyworks, and Infineon already operate design and test facilities in the region.

The strategic logic is compelling: Mexico's semiconductor market reached $10.4 billion in 2024, projected to hit $18.4 billion by 2033. The broader electronics manufacturing services market is even larger — $53.2 billion in 2025, projected to reach $97.4 billion by 2031. Foxconn's $690 million investment includes an AI server facility partnered with Nvidia, blurring the line between chip assembly and AI infrastructure.

This is fundamentally about US-China decoupling. Washington's security-shoring agenda is redirecting semiconductor supply chains away from Asia, and Mexico — with USMCA trade advantages, geographic proximity, and an established electronics manufacturing base — is the primary beneficiary. The risk is that Trump-era tariff uncertainty could slow momentum, but the structural pull toward Western Hemisphere chip production is unlikely to reverse.

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Source: Envisioning — Technology Research Institute (https://www.envisioning.com/research/forge/latam-ex-brazil__mx-semiconductor-packaging-nearshoring)