Mexico, US Partner to Strengthen Semiconductor Supply Chain

The US Department of State has forged a partnership with the Government of Mexico under the International Technology Security and Innovation (ITSI) Fund, established by the CHIPS Act of 2022, recognizing the critical importance of semiconductor supply chains, as the technological landscape is experiences a transformation driven by the rapid digitization of industries worldwide.

This partnership aims to create a more robust, secure, and sustainable global semiconductor value chain. The inaugural phase of this alliance entails a meticulous assessment of Mexico's existing semiconductor infrastructure, regulatory framework, and the needed workforce and infrastructure. Key stakeholders, including state governments, educational institutions, research centers, and corporations, will join forces with Mexico’s Ministry of Economy to conduct this comprehensive analysis. Insights gleaned from this assessment will serve as the basis for potential joint initiatives aimed at fortifying and expanding Mexico's semiconductor sector. 

The United States and Mexico stand as pivotal allies in ensuring the agility and resilience of the semiconductor supply chain amid the ongoing digital revolution. The production of indispensable commodities spanning from automobiles to medical apparatus hinges upon the strength of semiconductor supply chains.

This collaboration underscores the potential to augment Mexico's semiconductor industry, fostering mutual benefits for both nations. At the same time, it builds upon the foundation of cooperation established through bilateral mechanisms such as the High-Level Economic Dialogue and trilateral engagements like the North American Leaders Summit process. The partnership also aligns with broader regional efforts to enhance competitiveness in the semiconductor realm, including workforce development initiatives under the Americas Partnership for Economic Prosperity. 

In August 2022, President Biden signed the CHIPS Act of 2022 into law, ushering in a new era of investment to bolster domestic semiconductor manufacturing and research in the United States. Central to this legislation is the establishment of the ITSI Fund, endowed with US$500 million, disbursed over five years, commencing in Fiscal Year 2023. The primary objective of the ITSI Fund is to foster the development and adoption of secure telecommunications networks while ensuring the security and diversification of semiconductor supply chains through innovative programs and collaborations with allies and partners.