We document how the localization of production in Mexico's range of manufacturing subsectors and the specialization of its states have evolved as a result of the process of trade opening. We use the global estimate methodology to calculate the extent to which all industries are localized or all regions specialized. The results show that: (i) since 1993, there has been an increase in global localization and specialization in manufacturing production; (ii) transportation equipment, chemicals, and food products account for the greatest share of the overall increase in localization during this period; and (iii) those states closest to the US contributed most to the overall increase in specialization.JEL classification: F15, R11, R12