Sonora's Ambitions: Exporting Clean Energy, Courting Tech Giants

Sonora is looking to export clean energy to California and Arizona through a new solar farm project. Sonora's governor envisions a role for the state in the semiconductor supply chain, given Taiwan Semiconductor Manufacturing Company’s (TSMC) substantial US$40 billion investment in Arizona.

The initial phase of the Puerto Peñasco solar plant, situated in this border state known for its scorching temperatures, was inaugurated in February. This project is part of President Andrés Manuel Lopez Obrador's flagship solar initiative, which could potentially see the establishment of four more plants. During a visit to Taiwan, Sonora Governor Alfonso Durazo highlighted the significance of the "Plan Sonora" solar energy project. He emphasized its dual purpose of enhancing domestic connectivity to the national power grid and exporting energy to the US.

"Our aim is not only to serve Arizona but also California. It is a fundamental part of our strategy. We aim to transform our state into a clean energy exporter, specifically targeting the semiconductor and electric vehicle industries,” said Durazo.

While in Taipei, Durazo expressed intentions to meet with Foxconn, a major supplier to Apple, to explore potential investment in the state. However, he did not plan to meet with TSMC during this visit. Foxconn, which has made electric vehicles a central focus of its future growth, has substantial operations in Mexico but lacks facilities in Sonora.

Durazo elaborated on the administration’s interest in Foxconn. "Our interest in Foxconn revolves around establishing semiconductor plants and, eventually, facilities for various stages of electric mobility production." He also expressed his desire for a TSMC chip manufacturing plant in Sonora and disclosed plans to visit the Hsinchu Science Park, where TSMC conducts a significant portion of its manufacturing in Taiwan. "Considering the natural synergy with the ongoing investment relocation in Arizona, we view TSMC as a compelling option for Sonora state."

Sonora is on a path to become one of Mexico’s most important states for renewable energy development, as well as a benchmark for political strategies that benefit the acceleration of Mexico’s energy transition, according to Durazo. Infrastructure development plans centralize energy and logistics to take as much advantage as possible of Sonora’s privileged geography. Among the state’s advantages are 179,000km² of strongly solar-irradiated territory, 800km of Gulf of California coastline and over 580km of borders with the US, specifically with the states of Arizona and New Mexico.