According to the State Department, the US is partnering with Mexico to examine semiconductor supply chain opportunities to reduce reliance on manufacturing and assembly in Taiwan and China. The effort is part of the US CHIPS Act, a 2022 federal law establishing a $500 million fund to develop a semiconductor supply chain through initiatives with allies and partners.
The department said in a statement, “The Manufacturing of essential products ranging from vehicles to medical devices relies on the strength and resilience of the semiconductor supply chain.”
The partnership will likely be seen as more immediately important after the major quake in Taiwan. At this point, however, the department is evaluating Mexico’s existing semiconductor industry, regulatory issues, and workforce readiness.
