In the strategic analysis of North American manufacturing, the state of Chihuahua emerges not just as a participant, but as a dominant force. Sharing a vast border with Texas and New Mexico, Chihuahua has leveraged its strategic location and industrial prowess to become Mexico’s #1 exporting state. It is a region defined by large-scale, high-technology manufacturing, a culture of engineering excellence, and an unparalleled level of integration with the United States supply chain. For global corporations, particularly those in the electronics, automotive, and aerospace sectors, Chihuahua is a proven, high-performance manufacturing platform.
This definitive guide provides a comprehensive analysis of the Chihuahua advantage, designed for senior executives responsible for strategic investment, manufacturing, and supply chain operations. We will explore the state’s immense economic scale, conduct deep dives into its pillar industries, and examine the tangible assets of its advanced infrastructure, its highly skilled talent pipeline, and its mature business environment. Ultimately, this report will illustrate with clear, actionable data why Chihuahua is an essential destination for any company seeking a powerful, efficient, and deeply integrated presence in the North American market.
Chihuahua State
Free and Sovereign State Of Chihuahua
Motto: Bravery, Loyalty, Hospitality
State of Chihuahua within Mexico
| Capital | Chihuahua |
|---|---|
|
Area |
247,460 km2 (95,540 sq mi) |
|
Population (2020) |
3,741,869 |
|
Exports |
US$7.16 Bn
International Purchases
US $8.57 Bn
International Sales
5,096,702
Economically Active Population
Average Monthly Salary
$9.82k MX
3.96 % Of
Unemployment Rate
Chihuahua’s economic case is built on a foundation of exceptional export performance, sustained foreign investment, and a deeply ingrained industrial culture. The state is a primary driver of Mexico’s manufacturing GDP and consistently ranks as a top destination for foreign capital. For any company evaluating a new location, Chihuahua’s economic data demonstrates a level of maturity, scale, and pro-business orientation that is purpose-built for export-oriented manufacturing.
Chihuahua’s most impressive economic distinction is its status as Mexico’s leading exporting state. In a recent year, the state’s international sales reached a staggering USD 77.5 billion. This immense export volume is a testament to the productivity and global competitiveness of its industrial base. The vast majority of these exports are high-value manufactured goods, destined primarily for the United States. This export-first economy means that the state’s entire infrastructure, from its industrial parks to its customs ports of entry, is optimized for the efficient, high-volume movement of goods across the border.
This export prowess is fueled by a long history of successful Foreign Direct Investment. In 2024, Chihuahua attracted over USD 1.5 billion in FDI, and has accumulated more than USD 42 billion since 1999. The United States is the primary source of this investment, but the state has also attracted significant capital from companies in Germany, Canada, and Ireland. This investment is heavily concentrated in the state’s core manufacturing sectors, reflecting global confidence in Chihuahua’s operational excellence.
US$ 69.9 Bn
Exports
35.9%
Labor Informality Rate
2.62%
Unemployment Rate
The state’s economy is anchored by a massive industrial sector. According to the most recent economic census, Chihuahua is home to over 1,200 export-focused manufacturing facilities (maquiladoras). These operations are supported by a deep and resilient supply chain, a skilled workforce of over 400,000 people in the manufacturing sector, and a stable, pro-business environment that has been cultivated over decades.
The state’s economy is anchored by a massive industrial sector. According to the most recent economic census, Chihuahua is home to over 1,200 export-focused manufacturing facilities (maquiladoras). These operations are supported by a deep and resilient supply chain, a skilled workforce of over 400,000 people in the manufacturing sector, and a stable, pro-business environment that has been cultivated over decades.
The electronics cluster in Chihuahua, particularly in Ciudad Juárez, is one of the most mature in North America. It is anchored by some of the largest and most sophisticated contract manufacturers in the world.
Key Players: Foxconn, the world’s largest electronics manufacturer, operates multiple massive facilities in the state, making it one of the largest private employers. Other global leaders in Electronics Manufacturing Services (EMS) like Jabil, Flex, and Keytronic also have a significant presence, producing goods for a wide array of international clients. In addition to contract manufacturers, major brands like Honeywell and TE Connectivity have large-scale operations in the state.
The electronics industry in Chihuahua has deep expertise across several high-value product categories.
Computer and Data Processing Equipment: This is the largest segment of the state’s electronics industry. Chihuahua is a massive producer of computer servers, data storage units, and other data processing machines. In fact, this single category accounted for over USD 22 billion in exports in a recent year.
Telecommunications Equipment: Facilities in the state produce a wide range of communications hardware, including network switches, routers, and other essential components for both consumer and enterprise telecommunications.
Electrical Wires and Cables: Chihuahua is a major producer of electrical wires and cables, a critical component for the electronics and automotive industries. This segment alone generates over USD 5.7 billion in annual exports.
Consumer Electronics: The state also has a strong capability in manufacturing consumer electronics, including a significant production of televisions.
For an electronics company, Chihuahua offers a level of scale, experience, and supply chain maturity that is difficult to match. The presence of so many major contract manufacturers has created a deep ecosystem of component suppliers and a workforce with decades of experience in high-volume, high-quality electronics production. Its proximity to the U.S. market provides a decisive logistical advantage over any Asian manufacturing location.
[For a broader overview of the national sector, please see our full report: An Analysis of the Electronics Manufacturing Sector in Mexico]
While not known for final vehicle assembly like the Bajío region, Chihuahua is a vital and indispensable Tier 1 and Tier 2 supplier to the North American automotive industry. The state is a powerhouse in the production of high-value, technologically complex automotive components, leveraging its expertise in electronics and advanced manufacturing.
The state’s automotive cluster is comprised of over 400 specialized companies, including many of the world’s most important Tier 1 suppliers.
Key Players: Major global suppliers with a significant presence in Chihuahua include Aptiv, Lear Corporation, ZF Group, Bosch, and Continental. These companies operate large, sophisticated plants that produce critical systems for virtually every major automaker in North America.
Economic Impact: The automotive sector is the second most important industry in the state, employing over 145,000 people and accounting for over 40% of the total manufacturing industry in key cities like Juárez.
The Chihuahua automotive cluster excels in producing the high-technology systems that are essential for modern vehicles.
Automotive Electronics: This is the state’s primary strength. Chihuahua is a leader in the production of complex wiring harnesses, electronic control units (ECUs), sensors, and infotainment systems. In fact, it is said that 95% of the electrical wiring in the Boeing 787 Dreamliner is designed and produced in Chihuahua, showcasing a level of expertise that is directly transferable to the automotive sector.
Interior Systems: Companies like Lear operate major facilities producing seats, dashboards, and other interior components.
Powertrain Components: The state also has a strong capability in manufacturing components for engines and transmissions, including a major Ford Motor Company engine plant.
For an automotive supplier, particularly one focused on electronics and high-tech components, Chihuahua is a premier location. It offers a highly skilled workforce, a deep and mature supply chain, and direct logistical access to both U.S. assembly plants and the major automotive clusters in central Mexico.
[Discover more in our complete analysis: An Analysis of the Automotive Industry in Mexico]
Chihuahua has a robust and growing aerospace cluster, with a strong reputation for its capabilities in complex assembly and precision machining. The state is home to over 45 major aerospace companies, including global leaders in both commercial and defense aviation.
Bell Helicopters operates a major facility in Chihuahua where it assembles 65% of the cabins for its 407 and 429 helicopter models. Safran runs the world’s largest facility for wiring harness fabrication in the state. Other key players with a significant presence include Honeywell, Textron Aviation, and GKN Aerospace.
The cluster excels in the assembly of aerostructures (fuselages, elevators), the production of aircraft interiors, complex electrical systems, and the high-precision machining of engine components. Honeywell operates the largest CNC machining center in Latin America within the state.
[For a broader overview of the national sector, please see our full report: An Analysis of the Aerospace Industry in Mexico]
Beyond its three main pillars, Chihuahua’s diverse economy includes a strong presence in other key sectors.
Medical Devices: Ciudad Juárez is a major hub for medical device manufacturing, ranking as one of the top locations in Mexico for this industry. The cluster leverages the state’s expertise in electronics and precision manufacturing to produce a wide range of products, from diagnostic equipment to disposable medical supplies. It is a major exporter of medical instruments, with this category alone accounting for over USD 4.5 billion in annual exports.
Mining and Metals: Chihuahua has a rich history in mining and continues to be a major producer of silver, lead, and zinc, supported by a strong metal mechanics industry.
The success of Chihuahua’s advanced manufacturing industries is built upon a foundation of exceptional human capital. The state’s workforce is known throughout Mexico for its high productivity, technical skill, and strong work ethic.
A World-Class University System: The state has a strong network of public and private universities focused on engineering and technology. This includes the Autonomous University of Chihuahua (UACH), the Autonomous University of Ciudad Juárez (UACJ), and several campuses of the Tecnológico de Monterrey (ITESM). These institutions work closely with the manufacturing sector to ensure a steady supply of well-trained engineers and technicians.
Specialized Training: Chihuahua has 6 dedicated R&D centers focused on the automotive industry alone, and numerous technical training centers that provide specialized skills for the electronics and aerospace sectors. This ensures that the workforce is constantly updated on the latest technologies and manufacturing processes.
A Large and Experienced Workforce: The state has a large, economically active population of over 1.8 million people, with a deep pool of experienced managers, engineers, and technicians who are veterans of the maquiladora industry.
Chihuahua’s most significant logistical asset is its strategic location, sharing a long and highly active border with the United States. The state’s infrastructure is purpose-built to facilitate high-volume, cross-border trade.
Ports of Entry: Chihuahua has several major commercial ports of entry, with the most important being the cluster around Ciudad Juárez-El Paso, Texas. The recently modernized Jerónimo-Santa Teresa port of entry, located just west of the cities, is a state-of-the-art facility designed to handle oversized cargo and reduce wait times for commercial freight.
Ground Transportation: The state is connected by a modern highway network directly to the U.S. Interstate system. Mexico Federal Highway 45 runs north from the city of Chihuahua to Ciudad Juárez, where it connects directly with U.S. Interstate 10, a major east-west corridor across the southern United States.
Rail Connectivity: Chihuahua has excellent rail connectivity, with service from both Ferromex and Union Pacific, providing a cost-effective option for moving heavy materials and finished goods to and from the U.S.
Industrial Real Estate: The state has a massive inventory of industrial real estate, with over 54 industrial parks offering world-class facilities to support any type of manufacturing operation.
Infrastructure & Logistics: The Power of the Border
Operating in Chihuahua means being in a state with a long and stable history of supporting foreign investment and a culture that is deeply pro-business.
Business Environment: Cities like Ciudad Juárez and the capital, Chihuahua City, are major industrial centers with a dynamic business environment. They offer a full range of support services, from legal and accounting to logistics and customs brokerage.
Quality of Life: The state offers a high quality of life with a lower cost of living than major U.S. industrial hubs. The cities offer a wide range of modern amenities, including excellent schools, healthcare, and retail options.
The state of Chihuahua offers a powerful and distinct value proposition. Its unique combination of being Mexico’s export leader, its deep expertise in the electronics and automotive component sectors, its world-class talent pool, and its unparalleled logistical connections to the United States make it a premier destination for any company seeking a competitive advantage in North America.
However, capitalizing on this opportunity requires a partner with deep, on-the-ground expertise. Navigating the process of site selection, legal incorporation, regulatory compliance, and administrative setup in any new region can be complex.
At Start-Ops, we specialize in providing end-to-end solutions for companies establishing manufacturing operations across Mexico. We manage the entire administrative and regulatory burden, from initial strategy to ongoing operations, allowing you to focus on your core business. Whether you are planning a project in Chihuahua or any of Mexico’s other industrial hubs, our team has the local knowledge and expertise to ensure your project is a resounding success.
Contact us for a strategic consultation to explore how establishing an operation in Chihuahua can become a cornerstone of your company’s North American strategy.
