Historic first-half capital inflows reinforce northern border manufacturing hubs, while industry leaders urge urgent energy and water grid modernization.

By Carlos Mendoza, Senior Financial Correspondent | The News México

MEXICO CITY — Mexico captured a historic $38.5 billion in foreign direct investment (FDI) during the first half of the year, propelled by global supply chain relocation across northern industrial states, the Ministry of Economy announced Thursday.

The unprecedented capital influx was heavily anchored in northern manufacturing hubs, led by Nuevo León, Coahuila, and Chihuahua, as multinational corporations accelerate nearshoring operations to serve the North American market.

According to federal authorities, more than 52% of the new investment flowed directly into advanced manufacturing, electric vehicle production, and semiconductor component assembly. Corporations based in the United States, Germany, Japan, and South Korea spearheaded the placements.

“Mexico’s macroeconomic stability, combined with the trade certainty provided by the USMCA and our logistical proximity to the North American market, continues to position our country as the primary destination for the reconfiguration of global supply chains,” the Minister of Economy stated during a morning press conference at the ministry’s headquarters in Mexico City.

Currency Support and Reserve Highs

The historic capital surge has also bolstered national financial indicators. In its latest quarterly report, the Bank of Mexico (Banxico) noted that the sustained investment inflow has helped reinforce the Mexican peso, maintaining exchange rates around 17.85 pesos per U.S. dollar while lifting international foreign reserves to all-time highs.

Central bank analysts highlighted that robust FDI figures continue to cushion the domestic financial system against global macroeconomic volatility.

Infrastructure Bottlenecks Loom

Despite the landmark figures, prominent private-sector leaders cautioned that persistent infrastructure deficits could constrain future expansion.

Business organizations, including the Business Coordinating Council (CCE) and the Confederation of Industrial Chambers (Concamin), warned that maintaining this momentum over the next five years will require swift modernization of electrical and water networks.

Industry leaders emphasized that state-owned utility Federal Electricity Commission (CFE) and the National Energy Control Center (Cenace) must accelerate capital allocations toward high-voltage transmission grids and renewable generation to guarantee reliable power for northern industrial corridors.