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The decree establishes immediate deduction incentives for new fixed asset investments under a tiered structure:
1. Fixed asset deductions (MXN 28.5B envelope): Companies can deduct 35% to 91% of investments in machinery, equipment, and fixed assets in the year of acquisition, with higher percentages for high-technology sectors and R&D. Eligible industries include automotive, aerospace, semiconductor, electronics, metal manufacturing, textiles, mining, air transportation, telecommunications, power, hydrocarbons, construction, railways, and electromobility.
2. Training and innovation fund (MXN 1.5B): Supports dual-education workforce training programs and technological innovation including patent development.
3. SME set-aside: At least MXN 1 billion reserved for micro, small, and medium enterprises.
4. Temporal scope: Incentives apply through 2030, aligned with the Sheinbaum administration's six-year term objectives.
The decree is part of the broader "Plan Mexico" national strategy announced by President Claudia Sheinbaum on 13 January 2025, which targets import substitution, job creation, and positioning Mexico among the world's top-10 economies. The semiconductor pillar specifically aims to double Mexico's semiconductor industry output by 2030, increasing national content in global value chains by 15%.
relative to the US CHIPS Act ($52.7B) or EU Chips Act (EUR 43B target). Compared to peer emerging-market programs (Brazil Semicon ~BRL 10B, India Semiconductor Mission ~USD 10B), it is in the middle tier.
means components manufactured in Mexico can count toward US regional content requirements and avoid tariffs that apply to China-origin goods. This creates a structural pull for semiconductor assembly, test, and packaging (ATP) operations as well as automotive and aerospace supply chains seeking to de-risk from China.
Mexico is not funding wafer fabrication facilities. The focus is on downstream manufacturing, assembly, and component production — which matches Mexico's existing industrial base but limits the measure's transformative scope.
Aptiv, Lear, Flex) benefit from accelerated depreciation on new lines.
accelerate OSAT (Outsourced Semiconductor Assembly and Test) capacity buildout in Mexico, potentially by existing operators like Skyworks, ON Semi, Intel Guadalajara, or new entrants.
2025 fentanyl-related tariffs on Mexican goods (filed: 2025-02-01-us-trump-fentanyl-tariffs-canada-mexico-china) create policy uncertainty that partially undermines the nearshoring value proposition. Watch for exemption negotiations and whether semiconductor/automotive sectors receive carve-outs.
materials companies that benefit from nearshoring capex, but Mexican equities are not heavily weighted toward the directly affected sectors (mostly financials, consumer staples, telecoms).
vs. general manufacturing equipment under the tiered structure?
application/approval process?
tension between nearshoring incentives and fentanyl-tariff escalation?
workforce) to support semiconductor ATP capacity given the chronic electricity and water constraints in northern border states?