LG Group is accelerating its expansion in Mexico, both through its consumer brands—via LG Electronics—and its advanced electronic components division—through LG Innotek.

So far this year, the South Korean conglomerate has absorbed about 45,000 square meters of industrial space in Querétaro and Reynosa—including operations at Kaizen City Industrial Park, Prologis Pharr Bridge Industrial Center and Prologis Villa Florida Industrial Center II—consolidating a footprint that, according to SiiLA data, now exceeds 300,000 square meters nationwide.

LG’s investment reflects the growing interest of South Korean companies in Mexico. Eighty-five percent of those arriving belong to the automotive, electronics and capital goods sectors, and in electronics—where giants like Samsung and LG stand out—they account for nearly one in ten companies operating in the country.

In total, approximately 50 major Korean electronics firms already operate nationwide, and their gross leasable industrial area has grown by 4% in just the last year. The vast majority—eight out of ten—are based in Tijuana, Querétaro or Monterrey, now the sector’s main magnets.

Clear factors drive the preference for these three markets: Tijuana offers a direct link to the U.S. market and decades of experience in electronics manufacturing; Querétaro combines a strong logistics corridor in the Bajío region with available energy and a growing tech ecosystem; and Monterrey brings its historic industrial weight, energy infrastructure and easy border crossing. This combination of proximity to end customers, specialized talent and supplier networks has cemented these markets as the natural hubs of South Korean electronics investment.

That dynamism has statistical backing: according to SiiLA estimates based on INEGI data and a time-series model¹, Mexico’s electronics manufacturing GDP grew at a compound annual rate of about 7.0% from 2020 to 2025, and is expected to grow around 3.2% annually from 2025 to 2027. The trend confirms that, even with the expected slowdown, the country’s electronics industrial base will continue to expand at a pace exceeding that of the national economy.

In this context of sustained expansion, LG Innotek’s new plant—dedicated to cameras, LEDs and components for the automotive sector—is more than a capacity increase: it signals the South Korean group’s push to strengthen its most technology-driven division in Mexico’s leading industrial regions.

To stay up to date on the most significant investments in the industrial market, visit SiiLA REsource or email contacto@siila.com.mx.

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¹ Methodological note: Projection generated with an ARIMA (1,1,0) model with drift, applied to the 1993–2022 annual historical series of Mexico’s electronics manufacturing GDP (INEGI, SCIAN 334). The CAGR calculation combines observed and forecast data, assuming the continuation of past trends, without accounting for external shocks or policy changes.