Puebla to Host Semiconductor Hub for Olinia EV Project

Puebla will host the National Semiconductor Design Center for the Olinia semiconductor and EV project. The center will count with the support of the Instituto Politécnico Nacional (IPN), the Tecnológico Nacional de México (TecNM), and private enterprises. The primary goal is to integrate Mexico into high-value stages of the global microchip supply chain while reducing reliance on foreign suppliers.

"This project is a fundamental step for the industrialization of the state and the country, aligned with supply chain relocation [nearshoring] strategies," says Olivia Salomón, Minister of Economy of Puebla. Salomón says that this strategy is oriented to capitalize on Mexico's geopolitical and logistical advantages in the context of reconfiguring global trade.

Edmundo Gutiérrez, General Manager, Ministry for Science, Humanities, Technology, and Innovation (SECIHTI), says that Puebla's government has provided economic resources, logistical support, and infrastructure for the project. 

The decision to establish a semiconductor plant in Mexico responds to several global and national factors. The microchip supply crisis, which intensified between 2020 and 2022, exposed critical vulnerabilities in supply chains that were concentrated in Asia. This crisis disproportionately affected key industries such as the automotive sector.

This scenario prompted several economies, notably the United States with its CHIPS and Science Act, to develop incentives to encourage semiconductor production in North America. However, Mexico's participation has traditionally been limited to back-end processes like assembly, testing and packaging, which contribute relatively low added value.

Puebla was selected due to its consolidated industrial ecosystem. It has a strong automotive sector, which is the main consumer of semiconductors after the technology industry. It also has several higher education institutions capable of providing the required human capital.

Project Details and Institutional Roles

Roberto Capuano, Project Coordinator, Kutsari, national articulator for strengthening the integrated circuits industry in Mexico, says that the Center for Design and Engineering has already been established and is fully operational at the Tecnológico de Puebla. A new building for the center is now under construction on the campus. This facility will serve as a primary innovation space for the Olinia project.

The IPN will be responsible for several key areas in the Olina project, says Arturo Reyes, Director General, IPN. These include the development of the vehicle’s exterior and interior design; software for the control, communication, operation and monitoring of the vehicles; a vehicle charger; and a comprehensive quality management system for all processes.

To support the project long-term, specialists have traveled to China and Taiwan to explore supplier markets and build strategic alliances, says Reyes. He adds that the IPN will begin offering a specialization in electric and hybrid vehicles starting on Aug. 18.

The IPN is also conducting a market analysis and business plan for mini EVs in Mexico, which has reached 90% completion. Reyes says that once finished, the analysis will allow for dimensioning the market's size and location.

Thirty-four high-level researchers and scientists have relocated from across the country to focus full-time on the Olinia project, says Ramón Jiménez, Director General, TecNM.