Mexico and the U.S. agree on strategies to boost semiconductor industry

Mexico and the U.S. agree on strategies to boost semiconductor industry

MEXICO – The U.S. Embassy in Mexico pointed out that under the USMCA and the High Level Economic Dialogue, both countries contribute to consolidate North America as the most competitive and modern region, for which reason it has been agreed to create a partnership that will allow the semiconductor industry to grow and diversify.

According to the diplomatic representation, the semiconductor industry plays a crucial role in advancing towards new technologies, since, in addition to contributing to the transition towards electromobility or advances in medical and digital technology, it drives innovation and development.

U.S. Ambassador to Mexico Ken Salazar said that to take advantage of the benefits arising from the semiconductor industry and integration, both countries agreed to form a new partnership to grow and diversify the global semiconductor ecosystem under the International Technology Innovation and Security (ITSI) Fund, created by the CHIPS (Creating Helpful Incentives to Produce Semiconductors) Act of 2022.

This fund provides the State Department with $500 million, or $100 million annually for five years, to globally promote the development and adoption of secure and reliable telecommunications networks, as well as to ensure the security of semiconductor supply chains and their diversification.

“We have already initiated bilateral and multi-sector cooperation through the Semiconductor Collaboration Forum with the first meeting in Guadalajara in February and we look forward to the next forum in Baja California in June,” said Salazar.

The ambassador noted that the next step includes a comprehensive assessment of the semiconductor ecosystem and the regulatory framework in Mexico, as well as labor and infrastructure needs in which the Mexican government, through the Ministry of Economy, state governments, educational institutions, research centers and the private sector will participate.

This partnership underscores the role of the two countries for the competitiveness of North America by strengthening this industry in Mexico and helping to ensure that the semiconductor supply chains continue to advance and strengthen for the benefit of both nations, their prosperity and well-being.

It also underscores the importance of continuing to invest in education and U.S.-Mexico educational exchanges to boost the ingenuity and talent of young people to contribute innovative ideas as a fundamental part of North America’s development, said Salazar.