Slide1 : Electric - Electronics Sectors
2006
CONTENTS : CONTENTS Electronic Market Overview
World Market Trends
Openness of Mexican Economy
Economic Indicators
The Electronics Sector
World Wide Electronic Sector : World Wide Electronic Sector
World Market Trends : Environmental friendly products that minimize pollution
Protect natural resources (water, air & energy)
Thinner, lighter & Smaller products that offer substantial reduction in power consumption
Increasing End User Applications Lead to Significant Market Growth World Market Trends
World Market Trends : 2005 sales rose 5% to $106 billion. Similar forecast increases for the following years are expected until 2007. Digital TV Sales Increase 61.7% to 4.12M In ’03. The demand for FPDs is expected to be strong as they replace low-priced CRT displays in many applications. World Market Trends
Technological advancements are improving production yields and reducing the manufacturing costs of flat panel displays (FPD), increasing their use in many end user applications. If the proliferation of cellular phones, personal digital assistants (PDAs), camcorders, game consoles, and digital cameras across the world is any indication, the demand for FPDs is likely to increase. : Technological advancements are improving production yields and reducing the manufacturing costs of flat panel displays (FPD), increasing their use in many end user applications. If the proliferation of cellular phones, personal digital assistants (PDAs), camcorders, game consoles, and digital cameras across the world is any indication, the demand for FPDs is likely to increase. World Market Trends
Color TV World Market : Color TV World Market 140 million sets world wide
USA 25 million sets
Japan 9 million sets
China 28 million sets
Europe 12 million sets
LCD TV World Demand : LCD TV World Demand Source: CEA Market Research
Forecast of Plasma TV sales : Forecast of Plasma TV sales Source: CEA Market Research
Analog Color TV sales : Analog Color TV sales 5% 80% 15% Labor CRT Accessories Source: CEA Market Research
Slide11 : OPENNESS OF THE MEXICAN ECONOMY Preferential market access to 32 countries
Free Trade Agreements with USA and Europe
Negotiating FTA with Japan
Market access to all countries in Central America
Slide12 : El Salvador Costa Rica Nicaragua Honduras Guatemala Israel Bilateral Investment Treaties Free Trade Agreements Canada USA Chile Bolivia Venezuela Colombia Uruguay Portugal Netherlands Switzerland Austria Spain France Italy Greece Germany Belgium Luxembourg Finland Denmark Ireland UK Sweden Norway Iceland Liechtenstein Argentina South Korea Cuba FREE TRADE AGREEMENTS AND BILATERAL
INVESTMENT TREATIES
Slide13 : Source: INEGI INTEREST RATES
Slide14 : Source: INEGI INFLATION RATES
Slide15 : Source: JP Morgan COUNTRY RISK
Slide16 : Source: JP Morgan MEXICO´S OUTSTANDING POSITION IN LATIN AMERICA
Slide17 : Source: INEGI INDUSTRIAL PRODUCTION
Slide18 : Mexico has become the seventh largest exporter in the world
Second largest exporter to the U.S. in 2002
Mexico is by far the leading exporter of the Latin American region
Exports of Mexico account for almost twice the total exports of Brazil, Argentina, Paraguay and Uruguay put together. MAIN RESULTS OF OPENNESS
ELECTRIC - ELECTRONICS SECTORS : ELECTRIC - ELECTRONICS SECTORS
Slide20 : Automobiles and Autoparts
More than 10 billion dollars have been invested in this sector in Mexico, and currently exports to the U. S. more than 30 billion dollars a year.
Electronics And Home Appliances
Currently trades with the U.S. more than 87 billion dollars a year. MOST BENEFITED SECTORS
Slide21 : TRADE BALANCE
2005
Slide22 : ELECTRONICS SECTOR EXPORT DYNAMICS 1998-2005 Parts and components Electromedical Telecomm equip. IT Audio and video, 30,464 36,548 46,248 42,978 39,871 40,036 47,398 49,648
Slide23 : Source: World Trade Atlas & Bancomext PRODUCTS
PC´s 17%
TV’s 16%
Telecom. Sys. 8%
Interruptores 4% PRODUCTS
Semicond. 14%
PCB 12%
CRT 5%
Passive Comp. 5% USA 94% Canada
1.4% Switzerland
1.5% Others
2.4% Exports Destination
49,648 USA 14% Korea
7% China
11% Japan
7% Malaysia 8% Imports Origin
50,500 TRADE BALANCE 2005
Main Products and Countries
(millions of USD) Germany
0.7% + + Others 53%
Slide24 : MAIN ELECTRIC AND ELECTRONICS CLUSTERS NORTHWEST
TIJUANA
MEXICALI
SAN LUIS R.C.
TECATE
ENSENADA
NOGALES NORTH
CD. JUÁREZ
CHIHUAHUA NORTHEAST
MONTERREY
SALTILLO
REYNOSA
TAMPICO CENTRAL
EDOMÉX
QUERÉTARO
MORELOS
PUEBLA
VERACRUZ WEST
GUADALAJARA
AGUASCALIENTES
MANZANILLO SOURCE: Preliminary data from Banco de México 34
Slide25 : AUDIO & VIDEO
Main Manufacturers in Mexico SOURCE: BANCOMEXT 27
Slide26 : PERSONAL COMPUTERS
Main Manufacturers in Mexico SOURCE: BANCOMEXT 28
Slide27 : ELECTRONICS INDUSTRY
MAIN DOMESTIC COMPONENTS SUPPLIERS SOURCE: BANCOMEXT 29
Slide28 : SOURCE: BANCOMEXT ELECTRONICS INDUSTRY
MAIN DOMESTIC COMPONENTS SUPPLIERS 30
Slide29 : ITA Plus
National Program for the Competitiveness of the Electronics Industry and High Tech SUPPORT PROGRAMS
Slide30 : Mexico’s ITA Plus, eliminates tariffs on imports from all the world to:
Computer products (Computers, monitors, printers, scanners)
Telecommunication products (modems, cellular phones, office switching equipment, switching transmission equipment, audio & video)
Other electronics goods (calculators, photocopy machines, cash registers). ITA PLUS OBJECTIVES
Slide31 : Package 1:
Elimination of tariff to 290 codes for all importers will be according to three groups: ITA PLUS PACKAGES 9 Package 2:
Tariffs on raw materials and inputs of other sectors, such as steel, plastics, and chemical products, only to be used by the electronic, computer and telecommunications firms, were eliminated since September 2002 (278 tariff codes in the electronics PROSEC)
Slide32 : Electronics, computer and telecommunications productive chain was liberalized: tariffs on almost 4,000 are to be eliminated 11 ITA PLUS COVERAGE
Slide33 :
NATIONAL PROGRAM FOR COMPETITIVENESS OF ELECTRONICS AND HIGH TECHNOLOGY INDUSTRIES 33 The National Program for the Competitiveness of the Electronics Industry and High Technology includes issues such as:
Designing a competitive fiscal policy
Promoting a competitive tariff structure
Efficient foreign trade processes
Develop the supply chain
Promoting technological development
Upgrading human capital
Generating an adequate infrastructure