New Partnership with Mexico to Explore Semiconductor Supply Chain Opportunities

The U.S. Department of State will partner with the Government of Mexico to explore opportunities to grow and diversify the global semiconductor ecosystem under the International Technology Security and Innovation (ITSI) Fund, created by the CHIPS Act of 2022. This partnership will help create a more resilient, secure, and sustainable global semiconductor value chain.

The initial phase includes a comprehensive assessment of Mexico's existing semiconductor ecosystem and regulatory framework, as well as workforce and infrastructure needs. Key stakeholders in the Mexican ecosystem, such as state governments, educational institutions, research centers and companies will participate in this analysis in conjunction with Mexico's Secretariat of Economy. The insights gained from the assessment will serve as the basis for potential future joint initiatives to strengthen and grow this critical sector.

The United States and Mexico are key partners in ensuring the global semiconductor supply chain keeps pace with the digital transformation underway worldwide. Manufacturing of essential products ranging from vehicles to medical devices relies on the strength and resilience of the semiconductor supply chain. This collaboration between the United States and Mexico underscores the significant potential to expand Mexico's semiconductor industry to the benefit of both nations and will build on existing cooperation under the bilateral High-Level Economic Dialogue and trilateral North American Leaders Summit process. This partnership will also support the work already underway to bolster regional competitiveness in semiconductors, including workforce development, in the Americas Partnership for Economic Prosperity.

In August 2022, President Biden signed the CHIPS Act of 2022, a U.S. law that appropriated new funding to boost domestic manufacturing and research of semiconductors in the United States. The CHIPS Act of 2022 created the ITSI Fund, which provides the U.S. Department of State with $500 million ($100 million per year over five years, starting in Fiscal Year 2023) to promote the development and adoption of secure and trustworthy telecommunications networks and ensure semiconductor supply chain security and diversification through new programs and initiatives with our allies and partners.

More information about the ITSI Fund: The U.S. Department of State International Technology Security and Innovation Fund.

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