U.S. electronics and technology firm Sanmina is reportedly investing US$48 million in the Mexican state of Jalisco as part of a project aimed at developing technology for automotive and telecom customers.
The new investment will create nearly 1,000 jobs in Mexican tech sector. According to Spanish news reports, Sanmina will hire engineers, administrators, operators, and technicians as it bulks up its operation to meet output targets.
Sanmina’s operation in Mexico is not limited to Jalisco; the company has plants and offices in Mexico City, Monterrey, and Reynosa. According to reports, nearly one third of its global workforce is based in Mexico, particularly in Guadalajara, the city dubbed as the Mexican version of Silicon Valley.
Jalisco has long been the favorite for global electronic firms, housing manufacturing plants of eight of the top 10 electronic manufacturers worldwide, including Solectron, Flextronics, and SCI Systems. Many original equipment manufacturers, including IBM, ON Semiconductor, Hewlett Packard, and Kodak, also have a long history of working in Guadalajara.
But Sanmina has a special relationship with Jalisco. In 2013, the Mexican government honored the company with its Empresa Incluyente Gilberto Rincón Gallardo award in recognition of the company’s corporate social responsibility.
Sanmina’s Mexican operations produce a broad range of products for communications networks, as well as medical, industrial, multimedia, and automotive markets. Products include complex communications infrastructure and medical equipment, gaming systems, and advanced automotive electronics.
Daniel Curiel, Coordinator of the Council of Industrial Chambers of Jalisco (CCIJ), has reacted to local papers, saying Sanmina’s expansion highlights the growing traction of Jalisco’s tech sector, which is estimated to have employed more than 100,000 people.
Sanmina’s new investment plan was revealed to local media by Jalisco’s governor Aristotle Sandoval, who recently toured the U.S. Silicon Valley meeting with top executives of technology firms with operation in Mexico.
The governor reiterated that his government would continue easing the business climate by strengthening security and transportation networks in addition to increasing incentives for companies that generate jobs for local communities.
According to reports, Internet Brands Inc and 3D printer specialist Type A Machines have also expressed interest in investing in Jalisco.
Based in El Segundo, Calif, Internet Brands is reportedly adding 50 jobs to its Mexican operation, while Type A Machines will add more than 200 positions.