Foreign tech companies are flocking to Guadalajara, Mexico, which is cementing its reputation as the Latin American country’s innovation capital.

 The city’s annual tech exports have topped 20 billion US dollars, and that number is expected to grow.

Mexico’s second-largest city is recognized as the country’s answer to Silicon Valley north of the border. Over 300 startups in the state of Jalisco have attracted nearly 120 million US dollars in capital since 2014.

One such firm is KaraOkulta, which first rose to fame in 2015 with a game that allowed users to hurl virtual footballs at then candidate for president, Donald Trump.

“Mexico is a country that can now compete with other countries in the first world in matters of technology and education. There are a lot of talents here,” KaraOkulta product manager Regina Orozco said.

American tech giants Intel and Oracle already have offices in Guadalajara. The state of Jalisco, which Guadalajara calls home, offers hefty tax breaks and subsidies for Silicon Valley firms that invest in the city.

Guadalajara’s draw is more than just being a place where electronics can be manufactured on the cheap.

“Before American companies came here for the software that was cheaper but of less quality. All the engineers and highly skilled workers are over there,” Jalisco Innovation and Business Development director Margarita Solis said.

“But that’s changing. They see that we have highly skilled software developers who are economically competitive,” she said.