Biology of Business

Baja California

TL;DR

Medical device manufacturing leader; $19.3B electronics exports (2024); 600+ Tijuana maquiladoras; $2.4B FDI (72% manufacturing).

State/Province in Mexico

By Alex Denne

Baja California is the undisputed center of North American medical device manufacturing—Tijuana alone exports more medical devices than any other city in Mexico. The state's 600+ maquiladoras employ workers across automotive, aerospace, electronics, and consumer products, but medical technology defines its competitive edge. In 2024, Baja California generated $19.3 billion in electronics exports, with the sector projected to grow 35% over the next two years.

The maquiladora model began here: foreign companies import components duty-free, assemble products using Mexican labor, and re-export to North America. Between January 2024 and January 2025, IMMEX program revenues rose from 3.4 trillion to 4.5 trillion pesos nationally, with Baja California leading. The state received $2.4 billion in FDI in 2024, with 72% directed to manufacturing. Over 50 universities produce thousands of engineers annually, feeding a qualified workforce of 1.8 million.

By 2026, Baja California will test whether nearshoring can survive tariff uncertainty. Ensenada's port throughput dropped 14% in early 2025 as US trade tensions affected cargo flows. If USMCA negotiations stabilize and companies continue relocating supply chains from Asia, the state could capture additional high-value manufacturing. If tariffs disrupt cross-border logistics, the border model that made Tijuana may need reinvention.

Related Mechanisms for Baja California