<P> Mexico is also home to a large number of OEM and ODM manufactures both foreign and domestic . Among them include Foxconn, Celestica, Sanmina - SCI, Jabil, Elcoteq, Falco, Kimball International, Compal, Benchmark Electronics, Plexus, Lanix and Flextronics . These companies assemble finished electronics or design and manufacture electronic components on behalf of larger companies such as Sony or Microsoft using locally sourced components, for example the ODM, Flextronics manufactures Xbox video games systems in Guadalajara, Mexico for Microsoft using components such as power systems and printed circuit boards from a local company, Falco Electronics which acts as the OEM . </P> <P> The success and rapid growth of the Mexican electronics sector is driven primarily by the relatively low cost of manufacturing and design in Mexico; its strategic position as a major consumer electronics market coupled with its proximity to both the large North American and South American markets whom Mexico shares free trade agreements with; government support in the form of low business taxes, simplified access to loans and capital for both foreign multinational and domestic startup tech - based firms; and a very large pool of highly skilled, educated labor across all sectors of the tech industry . For example, German multinational engineering and electronics conglomerate Siemens has a significant Mexican base, which also serves as its business and strategy hub for Central American countries and the Caribbean region . </P> <P> There are almost half a million (451,000) students enrolled in electronics engineering programs with an additional 114,000 electronics engineers entering the Mexican workforce each year and Mexico had over half a million (580,000) certified electronic engineering professionals employed in 2007 . From the late 1990s, the Mexican electronics industry began to shift away from simple line assembly to more advanced work such as research, design, and the manufacture of advanced electronics systems such as LCD panels, semiconductors, printed circuit boards, microelectronics, microprocessors, chipsets and heavy electronic industrial equipment and in 2006 the number of certified engineers being graduated annually in Mexico surpassed that of the United States . Many Korean, Japanese and American appliances sold in the US are actually of Mexican design and origin but sold under the OEM's client names . In 2008 one out of every four consumer appliances sold in the United States was of Mexican design . </P> <P> While many foreign companies like Phillips, Vizio and LG simply install wholly owned factories in Mexico a number of foreign companies have set up semi-independent joint venture companies with Mexican businesses to manufacture and design components in Mexico . These companies are independently operated from their foreign parent companies and are registered in Mexico . These local companies function under Mexican law and retain a sizable portion of the revenue . These companies typically function dually as in - company OEM development and design facilities and manufacturing centers and usually produce most components needed to manufacture the finished products . An example would by Sharp which has formed Semex . </P>

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