As the review of the United States–Mexico–Canada Agreement (USMCA) approaches, electronics and semiconductor supply chains are emerging as key topics in discussions about North America’s industrial strategy.
Public consultations organized by Mexico’s Ministry of Economy identify these sectors as strategic for strengthening regional resilience, reducing reliance on external suppliers, and increasing the value generated within the North American bloc.
The assessment is based on 30 sector roundtables, consultations across Mexico’s 32 states, and 573 survey responses. One of its main conclusions is that raising national and regional content in goods produced and traded under the agreement will be a major challenge in the coming years.
Semiconductor-related supply chains—along with critical materials, chemicals, and metalworking—were highlighted as areas with strong dependence on inputs from outside the region. This reliance can limit North America’s ability to respond to supply disruptions and constrain the amount of value created within the bloc.
Export Strength, Limited Regional Integration
Survey results show that Mexico’s electronics industry is highly export-oriented. More than half of respondents reported exporting 100% of their production.
At the same time, that export capacity relies heavily on imported inputs. About 58% of respondents said between 76% and 99% of their inputs come from abroad, while another 16% indicated that all of their components are imported.
This dynamic is also reflected in the North American value added contained in exports. In the electronics sector, 58% of responses placed regional value added between 0% and 20%, while 26% reported levels between 21% and 40%, pointing to relatively limited regional integration.
Debate Over Rules of Origin
The report also shows that views on USMCA rules of origin vary across industries. Many sectors emphasize the importance of maintaining regulatory certainty and avoiding changes that could disrupt existing supply chains.
At the same time, some industries warn that rapidly increasing regional content requirements could create bottlenecks if key inputs remain concentrated outside North America—particularly in highly specialized sectors such as advanced electronics and semiconductors.
According to the report, overly rigid rules could raise production costs and reduce the region’s competitiveness, especially in industries that depend on complex components and technical certifications.
Overall, consultations suggest that the USMCA continues to be viewed as a platform for investment and regional integration. The debate around electronics and semiconductors may ultimately test whether North America can move beyond an export-assembly model toward deeper technological integration.
Source: El Economista
