The U.S. and Mexico will team up on an AI chip supply chain


The United States is joining forces with Mexico to strengthen the AI chip supply chain, with Mexico set to evaluate its semiconductor capabilities for future collaborative projects. Amidst the intensifying competition in AI chip production with China, the U.S. is seeking to enhance its manufacturing capabilities by partnering with Mexico.

This initiative, announced by the U.S. State Department, will be supported by the International Technology Security and Innovation (ITSI) fund, derived from the 2022 CHIPS and Science Act. The collaboration aims to fortify the global semiconductor supply chain, ensuring its resilience, security, and sustainability.

Mexico’s initial role involves a comprehensive review of its semiconductor industry, examining the regulatory environment, workforce, and infrastructure. This evaluation, conducted by Mexican state governments, academics, researchers, and businesses in conjunction with the Secretariat of Economy, will inform future joint endeavors between the two countries. Responses from the U.S. State Department and Mexico’s Secretariat of Economy regarding the partnership were not immediately available.

The U.S. State Department emphasized the strategic importance of the U.S.-Mexico partnership in maintaining a robust semiconductor supply chain amid global digital advancements. The collaboration is expected to expand Mexico’s semiconductor sector, benefiting both nations and building upon existing bilateral and trilateral economic dialogues.

This partnership represents the first international collaboration under the CHIPS Act. The U.S. has already invested heavily in domestic semiconductor production, with a notable $8.5 billion investment in Intel. This funding is part of Intel’s broader commitment to invest over $100 billion in the next five years to enhance semiconductor manufacturing across several U.S. states, including Arizona, New Mexico, Ohio, and Oregon.

Source: Quartz