US and Mexico partner on semiconductor supply chain development

The US and Mexico are teaming up under the CHIPS Act of 2022 to assess and enhance Mexico’s semiconductor industry. This involves analyzing its ecosystem, emphasizing supply chain resilience, and leveraging existing cooperation.

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The U.S. Department of State and the Government of Mexico are collaborating to assess and potentially enhance Mexico’s semiconductor ecosystem. This partnership falls under the International Technology Security and Innovation (ITSI) Fund, which was established by the CHIPS Act of 2022 to bolster the global semiconductor ecosystem.

The initial phase involves conducting a comprehensive assessment of Mexico’s semiconductor industry, including analysing existing infrastructure, regulatory framework, workforce, and identifying potential areas for growth and improvement. Key stakeholders in Mexico’s semiconductor ecosystem, such as state governments, educational institutions, research centres, and companies, will participate in the analysis, with the involvement of the Secretariat of Economy of Mexico.

The collaboration underscores the significance of a resilient semiconductor supply chain for various industries, including automotive and healthcare. It builds on existing cooperation between the US and Mexico under initiatives like the High-Level Economic Dialogue and the North American Leaders Summit process, while also supporting efforts to enhance regional competitiveness in semiconductors, including workforce development, through initiatives like the Americas Partnership for Economic Prosperity.
The CHIPS Act of 2022 allocated funding, creating the ITSI Fund with $500 million over five years to promote secure telecommunications networks and semiconductor supply chain security and diversification.