Government of the State of Jalisco

1. Government of the State of Jalisco Human Capital Formation in the Aerospace Industry Aerospace Manufacturing Globalization Seminar April 8th, 2005

2. Technicians Technicians Teacher’s Training Teacher’s Training Postgraduate Postgraduate Undergraduate & Technological Undergraduate & Technological Enrolment: Enrolment: students students National Population inHigher Education Source: Anuario Estadístico ANUIES 2003

3. Private Public National Total: Undergraduate and Technological Student Population in Public/Private Institutions Source: Anuario Estadístico ANUIES 2003

4. Health Sciences Agricultural Sciences Engineering and Technology Natural & exact Sciences Social & Administrative Sciences Humanities & Education National Total: Undergraduate Student Population per Study Area 2003 Source: Anuario Estadístico ANUIES 2003

5. Academic programs with higher number of undergraduate students 2003 • Law 203,086 • Business Administration 202,808 • Accounting 140,839 • Industrial Engineering 97,900 • Medicine 75,582 • Computer Science75,472 • Psychology72,214 • Computer Engineering 68,677 • Architecture 53,042 • Electrical Engineering49,896 Source: Anuario Estadístico ANUIES 2003

6. Doctoral degree Specialization Master’s degree 70% National Total: Postgraduate Population Source: Anuario Estadístico ANUIES 2003

7. Engineering and Technology Health Sciences Agricultural Sciences Humanities & Education Natural & exact Sciences Social & Administrative Sciences National Total: Postgraduate Population per Study Area 2003 Source: Anuario Estadístico ANUIES 2003

8. Doctoral degree Specialization Master’s degree Total Students: Postgraduate population in Engineering and Technology 2003 Source: Anuario Estadístico ANUIES 2003

9. National Enrollment in Engineering and Technology 2003 • Undergraduate students: 668,644 • Graduate students: 19,761 • Number of engineering programs: 1,300 • Number of engineering schools: 260 Source: Anuario Estadístico ANUIES 2003

10. Total 84.928 347.314 35.271 Source: Anuario Estadístico ANUIES 2003 23.720 Engineering Population in National Schools

11. Source: Anuario Estadístico ANUIES 2003 Total 1.297 9.312 689 379 Engineering Population in Jalisco Schools

12. Total 1.451 Aeronautical Engineering in Mexico Source: Anuario Estadístico ANUIES 2003

13. STUDENTS EXAMINED BY EGEL Examinees Application year Students Examined per year in Mexico EGEL= General Exam for Certification as a Student Graduated Source: CENEVAL, Reporte Estadístico Año 2004 No. 3

14. Students Examined per Program in Mexico EGEL= General Exam for Certification as a Student Graduated Source: CENEVAL, Reporte Estadístico Año 2004 No. 3

15. Students Examined in Mexico Civil Engineering Electric Engineering Industrial Engineering Electronic Engineering EGEL= General Exam for Certification as a Student Graduated Source: CENEVAL, Reporte Estadístico Año 2004 No. 3

16. Students Examined in Mexico EGEL= General Exam for Certification as a Student Graduated Source: CENEVAL, Reporte Estadístico Año 2004 No. 3

17. Design

18. Firmware and Embedded Systems • Guadalajara´s real claim to fame, acknowledged worldwide • Strong area of development in automotive electronics • Development of software for certain hardware-software interfaces, such as controls and servomechanisms, collectively known as firmware • Main interest of the local MNC´s such as HP, Siemens VDO, Freescale Semiconductors, ST Microelectronics, and now Contract Manufacturers like SOLECTRON, Jabil Circuits, Sanmina and Flextronics, to develop and outsource the development of firmware in the Guadalajara Metropolitan Area

19. R&D & innovation, Test Labs and New Product Development • HP is alreadyattracting R&D projects from its Paper Handling and Future Products Division, this year for over 15 million USD. • Test labs are being set all over Guadalajara Metro Region, with investments last year of over 10 million USD • Currently, Soluciones Tecnológicas, S.A. de C.V., a local Guadalajara SME is the only Mexican enterprise collaborating as a technological partner in the Sixth Framework Programme of the European Union in a long term development project related to Automotive Safety, precisely with the firmware for the project

20. Semiconductor Design • There are already twenty seven design houses including the Centre for Semiconductor Technology, CTS, of the Centre for Advanced Studies and Research of the National Polytechnic Institute, CINVESTAV, and INTEL´s Guadalajara Design Center, which resulted from a local company (TDCom) being bought by INTEL four years ago. • There are over 475 Mexican engineers doing design and/or embedded systems. • Fundamental area of interest for INTEL which is planning to grow significantly over the next two years to over 150 designers. Currently INTEL has over 90 designers.

21. International Design Houses in Jalisco • INTEL (IC´s Design) • Freescale Semiconductors (Software, IC´s Design) • IBM (Software, Software Testing, Embedded Systems) • SIEMENS (Hardware & SoftwareDesign, Embedded Systems ) • HP (Hardware & Software Design, Embedded Systems) • SOLECTRON (Software, Embedded Systems) • ST Microelectronics • INTEL (Platform Technology Lab)

22. Mexican Design Houses in Jalisco • IDEAR ELECTRÓNICA • MIXBAAL • SOLUCIONES TECNOLÓGICAS • SERVICIOS Y OPCIONES DE CÓMPUTO • EGOS CONSULTORÍA • HILDEBRANDO • GPI MEXICANA DE ALTA TECNOLOGÍA • MONOWARE TECHNOLOGIES • ASCI • EDEV 11. CTS/CINVESTAV 12. DDTEC • SERIEE • MEXIKOR • GOLLET • RESSER • QUEST • ATR • PEGASO CONTROL

23. F = X (Y +Z) More * R & D, Innovation - Products - Processes * Manufacturing - Final Assembly - Product Testing * Subassemblies Less * Engineering * Design X Y Z F * Sales * Distribution * Support Value Added Chain Experience and Infrastructurein the region inthe last 20 years

24. Availability of Mechanical Design and Engineering Skills • The Guadalajara Metro Area has thirteen universities, two public and eleven private, four of which have excellent programmes in mechanical engineering, electrical engineering, industrial engineering and associate degrees: Universidad Tecnológica de Jalisco, UTJ, (associate degrees), Universidad de Guadalajara, UdeG, Instituto Tecnológico y de Estudios Superiores de Occidente, ITESO and Monterrey TEC, ITESM. • The strength in mechanical engineering lies in heat transfer, thermodynamics, fluid mechanics and mechanical design. • The strength in industrial engineering lies in manufacturing processes and operations, CAD/CAM, quality assurance, lean manufacturing and materials.

25. Mechanical Design and Engineering Skills Available:Industry and Research and Development • The associate degrees (two years) have specific strengths in CAD/CAM, Metallurgy, Maintenance, Quality Assurance, Productivity. • Jalisco is very committed to the automotive parts industry and there are a few enterprises which have developed expertise in mechanical design. • The Foundry and Metalmechanic Institute is a private R&D center that serves the local industry and has some equipment for mechanical design. • The UTJ also has some labs that would enable it to develop a specific training programme for industry and to work in specific projects with industry. • The fact that there are good Mech Eng programs in Guadalajara makes it easier to develop expertise in this specific field.

26. Modelling and Rapid Prototyping • Jalisco has a specific interest in promoting the automotive and aerospace sectors. • The UTJ has a special program which will see the development of a specific lab for rapid prototyping and 3D modeling. • COECYTJAL can participate with the Secretary of Education in a project involving not only the establishment of the lab, but also co-financing the first projects with industry. • The UTJ also has a basic metallurgy lab which can be upgraded according to specific industrial needs. • The UTJ has a special liaison office to deal with industrial projects, very pragmatical in its approach.

27. Together, the Federal and State Governments are introducing creative incentive packages • Promoting higher value added investments, making use of tax credits and incentives on R&D and innovation (30% of all operation costs and capital investments) • Other federal incentives • PROSOFT (National Program for the Promotion of the Software Industry) • Duty free imports on most raw materials • Income tax cuts for maquiladoras • Immediate deduction of assets • Grants on labor intensive investments located in designated areas • State and local taxes incentives.

28. Jalisco State Incentives • The Jalisco State Council of Industrial Promotion, CEPE, provides an incentive for each job generated, according to the salary level. There is also an incentive for the creation of infrastructure. • The Jalisco State Council of Science and Technology, COECYTJAL, can participate with 50% of the cost of developing and relocating highly skilled human resources. • COECYTJAL can also give grants to R&D projects which will result in the development of new products and processes, also on a 50/50 partnership basis

29. Government of the State of Jalisco Human Capital Formation in the Aerospace Industry Aerospace Manufacturing Globalization Seminar April 8th, 2005