Mexico needs to accelerate investments in its semiconductor industry over the next two years to keep pace with competing countries. A senior U.S. official in Mexico highlighted the importance of ensuring that companies have sufficient water and energy resources.
The northern and central states of Mexico, which already have electronic production capabilities, are best positioned to attract new investments in this sector in the short term. Mexico is poised to take part in the lower-cost areas of the production chain, including testing and assembly, according to Jene Thomas, the director of the USAID Mission in Mexico. Last week, U.S. Secretary of State Antony Blinken met with counterparts from countries like Mexico to enhance Latin America’s role in the industry.
“There’s competition happening right now. Nearshoring isn’t just about Mexico; Costa Rica and Panama are also close to the U.S. and have similar development and expertise that make them competitive in this market,” Thomas noted in an interview in Mexico City on Monday.
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Meanwhile, Asian countries are focusing on leveraging global interest in diversifying supply sources. Thomas emphasized the urgency of the situation, saying that countries are rapidly making moves, which is why a two-year timeline is being discussed.
A roadmap presented by the U.S. Agency for International Development and the Mexico-United States Foundation for Science, known as FUMEC, suggests that Mexican states could reduce the nearly $40 billion worth of semiconductors imported from Asia in 2022. States like Baja California and Jalisco could expand their roles in basic and intermediate chip design, while production is expected to remain concentrated in the United States.
To begin establishing packaging, assembly, and testing processes where Mexico has growth potential in the near term, an investment of between $2 million and $5 million per company is expected, according to Eugenio Marín, executive director of FUMEC.
In recent years, the Biden administration has aimed to boost chip manufacturing and compete with Chinese players. Nearshoring, the practice where companies relocate closer to U.S. consumers to avoid supply chain disruptions, has been highlighted as a potential source of investment in Mexico. Some of the funding from the U.S. CHIPS Act for academic initiatives could be used to train both Mexican students and teachers, said Thomas.
“The funds are available. What we need to see is action from the government, which is why we have six states already advancing in creating a conducive environment,” Thomas explained. “Semiconductors are a critical component of nearshoring. Therefore, we need to witness more investments by states and cities in water and energy production. Fortunately, Mexico has abundant sunlight, which presents many opportunities.”
Source: https://www.perfil.com/noticias/bloomberg/bc-eeuu-insta-a-mexico-a-impulsar-produccion-de-chips-en-dos-anos.phtml
