US tech firms invest millions into Mexican “Silicon Valley”

Global Business

US tech firms invest millions into Mexican "Silicon Valley"

Foreign tech companies are flocking to one Mexican city.

Guadalajara is cementing its reputation as the tech capital, of the Latin American country.

Its annual tech exports have reached $20 billion and are expected to grow further.

CGTN’S Martin Markovits reports.
Follow Martin Markovits on Twitter @MartinMarkovits

US tech firms invest millions into Mexican "Silicon Valley"

Foreign tech companies are flocking to one Mexican city. Guadalajara is cementing its reputation as the tech capital, of the Latin American country. Its annual tech exports have reached $20 billion and are expected to grow further. CGTN'S Martin Markovits reports.

Known as Mexico’s second largest city, Guadalajara is now also being recognized as Mexico’s Silicon Valley. Almost $120 million has been invested in over 300 local startups in the state of Jalisco since 2014. One of these companies is Karaokulta Games.

The gaming startup found success in 2015 with a video game that allows users to hurl objects at U.S President Donald Trump for points.

American companies are flocking to Guadalajara. Both Intel and Oracle have new installations there. Along with Jalisco’s proximity to the Silicon Valley, many of these firms are also taking advantage of numerous government incentives including tax breaks and subsidies.

Instead of just looking to the region to manufacture cheap products, these tech giants are now turning to Mexico for highly skilled workers.

But there are still challenges. Mexico’s drug war poses risks in doing business here. While President Trump’s proposed tariff could scare off companies from investing in Mexico.

But this has not hurt the region from annually exporting an estimated $20 billion in tech products abroad. And with more firms investing in Jalisco, that number is expected to grow even more in the future.


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