SAN JOSE -- Flextronics, the world's second-largest EMS firm, is finding Mexico more to its liking, the company's chief executive said.

The company generates 33% of its sales from China, versus 15% from Mexico. However, the latter rose 400 basis points in the past year as rising wages in China made Mexico a more attractive option.

Wages in China have risen five years in a row, while pay in Mexico has been stagnant, CEO Mike McNamara told Bloomberg in an interview.

Flextronics said labor costs range from about 0.5% of sales for computers to 10% for power supplies.