Mexico and the US deal with semiconductors at financial dialogue

Mexico and america have launched a joint “semiconductor motion plan” that goals to make North America the world’s “strongest” chip-producing area. 

The announcement of the plan got here after high-ranking Mexican and United States officers participated within the third assembly of the relaunched Mexico-U.S. Excessive Stage Financial Dialogue (HLED) in Washington D.C. on Friday. 

High level talks
The summit was attended by top-level delegates from each america and Mexico. Seen right here is Mexican Overseas Affairs Minister Alicia Bárcena (heart). (Alicia Bárcena/X)

“Immediately… we’re launching a joint semiconductor motion plan to speed up our integration, to scale our efforts to draw new funding,” U.S. Secretary of State Antony Blinken informed a press convention. 

“Underneath President Biden’s management, we’re constructing regional clear power applied sciences and semiconductor provide chains by the Inflation Discount Act and the bipartisan CHIPS and Science Act that can drive our economies by this century,” he mentioned. 

Blinken mentioned that “Mexico’s overhauled one-stop store web site” – the federal authorities’s “ventanilla única” –  “is offering potential traders the tax and regulatory data that they should reap the benefits of this landmark laws.”

On the identical press convention, Overseas Affairs Minister Alicia Bárcena and Financial system Minister Raquel Buenrostro provided extra particulars on Mexico and america’ shared ambitions for the semiconductor business.

High-level summit US-MX
America is searching for to determine localized provide chains in Mexico for plenty of key industries. (Antony Blinken/X)

Bárcena, who succeeded Marcelo Ebrard as overseas minister earlier this yr, mentioned that “provide chains in our area and particularly semiconductors and conductors” was “some of the attention-grabbing subjects” mentioned at Friday’s bilateral assembly.    

She mentioned that Mexico and america have “a really clear technique: for this area to grow to be essentially the most highly effective area in manufacturing of semiconductors and conductors on the earth.”

In accordance with the worldwide freight platform ShipHub, Taiwan is the world’s largest semiconductor producer, accounting for 50% of whole manufacturing. South Korea ranks second adopted by Japan, China and america.

Buenrostro mentioned Friday that Mexico and the U.S. are “working collectively to show North America into crucial place for the mixing of provide chains pertaining to a number of strategic sectors,” together with semiconductors, electrical autos and medical provides.

PCB board
With the appearance of nearshoring, Mexico now harbors critical ambitions to fabricate semiconductors. (Vishnu Mohanan/Unsplash)

“Concerning semiconductors, Mexico, and the U.S. … are working to see how we will complement one another on this expertise to have the strongest provide chain on semiconductors, profiting from totally different ICT markets,” she mentioned.

“For Mexico, this can be a vital alternative. It permits us to have higher paying jobs,” Buenrostro mentioned.

Finally yr’s HLED, held shortly after america authorities launched its implementation technique for the US $50 billion “Chips for America” program, the U.S. invited Mexico to reap the benefits of huge funding within the sector.

“… What we’ve is an invite that’s obtained maybe as soon as in a lifetime, so we’re going to simply accept it, and thanks very a lot for pondering of Mexico,” Ebrard informed U.S. officers at a press convention in September 2022.

President Lopez Obrador, US Sec. of State Antony Blinken, US Sec. of Commerce Gina Raimondo
Semiconductor manufacturing was additionally a significant theme throughout final yr’s talks. (Presidencia)

The development in Mexico of a number of semiconductor crops has been introduced since then.

In a joint assertion launched on Friday, the Mexican and United States governments mentioned that their officers had “mentioned how one can seize rising alternatives by the HLED to advertise manufacturing funding and generate employment and prosperity as america implements the U.S. CHIPS and Science Act and the Inflation Discount Act.”

These two acts, the assertion mentioned, “collectively commit greater than $400 billion to strengthening regional semiconductor provide chains, decreasing greenhouse gasoline emissions, and boosting demand for electrical autos and clear power applied sciences.”

“We mentioned how one can proceed medical gadget and pharmaceutical regulatory collaboration, and advance different work. We additionally thought-about methods to deal with the local weather disaster and strengthen regional power safety,” the assertion added.

Medical device manufacturing
Mexico’s medical gadget manufacturing business was additionally a topic of debate on the talks. (Tetakawi)

Amongst different points mentioned on the HLED was cooperation on the Mexico-U.S. border, over which enormous volumes of licit – and illicit – items move.

“We’re taking steps to enhance and strengthen much more our border coordination, like piloting a mannequin port to streamline inspections and discovering methods to cut back wait instances, making it simpler for folks and items to cross legally whereas strengthening our capability to cope with fentanyl and different unlawful narcotics,” Blinken mentioned.

Bárcena additionally famous that methods during which border infrastructure could be strengthened have been mentioned.

“In terms of land commerce between the U.S. and Mexico, we’ve traces of communications which can be extraordinarily vital for the transportation of merchandise and other people. …  We now have 60 ports of entry on our shared border. …  We now have proven progress and talked in regards to the infrastructure on either side [of the border], discussing how we will deliver our infrastructure in control in order that we’ve higher outcomes,” she mentioned.

A car passes through a scanner along the U.S. border.
Representatives from the 2 international locations additionally mentioned methods to modernize the united statesMexico border to enhance crossing instances and deter crime. (Josh Denmark/U.S. CBP)

The overseas minister famous that Mexico put aside 15 billion pesos (about US $860 million) to spend on the modernization of border infrastructure this yr.

“Amongst different issues, [the investment will] improve our capability to detect weapons and artificial medication,” she mentioned.

Bárcena additionally highlighted that Mexico is at present america’ largest commerce accomplice, with near $400 billion in two-way commerce within the first half of the yr.

“Meaning many issues. It signifies that there are obligations, commitments, and I’d additionally say that there’s a shared imaginative and prescient to create some of the highly effective areas economically and socially talking,” she mentioned.

cocaine seizure
Fentanyl was additionally a key matter within the talks, because the U.S. and Mexico look to stem the stream of unlawful medication into america, which is experiencing a surge in deaths, attributed to the trafficking of fentanyl. (CBP South Texas/Twitter)

The HLED was held forward of this week’s Mexico-U.S. Excessive-Stage Safety Dialogue, at which the battle in opposition to fentanyl is ready to be a central difficulty. Blinken, Secretary of Homeland Safety Alejandro Mayorkas and Lawyer Basic Merrick Garland are among the many U.S. officers who will attend the assembly in Mexico Metropolis on Thursday.

Buenrostro mentioned Friday that Mexico “is dedicated to supporting the battle in opposition to artificial medication,” a view that contrasts with that held by some Republican Social gathering lawmakers within the U.S.

“That is one thing I wish to convey.  We wish to cooperate.  We wish to assist and do every part at our disposal to manage the productive chain, the illicit productive chain of … fentanyl,” she mentioned.

Mexico Information Each day 

Leave a Reply

Your email address will not be published. Required fields are marked *