Increased Semiconductor Production in North America

A Memorandum of Understanding (MOU) was signed between Arizona State University (ASU) and Esteban Moctezuma Barragán, the Mexican Ambassador to the United States, to enhance semiconductor manufacture in North America.

In order to lessen the region’s reliance on Asian manufacturing, the partnership aims to foster cooperation between ASU and institutions and companies in Mexico, according to ASU. The bipartisan CHIPS and Science Act, which US President Joe Biden signed earlier this year to inject $52 billion and boost the US’s semiconductor manufacturing capacities, is now in effect.

Since it is impractical to have all semiconductor manufacture in the US, the act also includes $500 million for international agreements. ASU seeks to increase the present manufacturing capacity of microelectronics firms while also aiming to provide guidance and training for colleges in both the US and Mexico. According to Moctezuma, during the last three decades, the US has decreased its share of global semiconductor output from about 40% in 1990 to just 12% in 2022.

“We need to continue working in this effort of bringing production back to North America. It is not just a matter of trade but of technology, education, competitiveness, innovation, workforce development, regional security and geopolitics,” said Moctezuma. He also stressed the significance of lessening reliance on Asian nations since a worldwide economic crisis is likely to occur if the supply chain breaks down. According to Moctezuma, semiconductors are also crucial to the automobile industry: “Semiconductors contribute up 40% of the overall cost of a new car today.”

Mexico is in a unique position to grow its market share as the automobile sector transforms to accommodate electromobility. The country’s advantages include a favorable geographic location, social and economic stability, low taxation, and a highly skilled labor force. To meet these expectations, however, there is still considerable work to be done throughout North America, not only in Mexico.

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