The Mexico-United States Foundation for Science (Fumec) asked Mexico to lay the foundations for it to lead the semiconductor industry within a period of no more than 2 years, which must be free of protectionism, subsidies and promote free competition among companies with a presence in Aguascalientes, Baja California, Chihuahua, Jalisco, Querétaro and Tamaulipas.
“North America requires and can grow a semiconductor chain in collaborative harmony, safe, resilient and diversified, which guarantees the availability of materials, technological facilities and qualified talent,” said Eugenio Marín, general director of the Mexico-United States Foundation for Science.
Worldwide, its revenues are expected to exceed 720 billion dollars in 2024, and reach 1.2 trillion dollars in 2029, according to Fumec.
Building a regional semiconductor supply chain —where Mexico acquires a growing role— will require specific actions by Mexican public and private institutions, said the representative of the organization in the presentation of the Roadmap: Opportunities for semiconductor nearshoring in Mexico.
He added that Mexico’s action plans must be operationally viable in the short term (one or two years) and focus on improving the capacity of the semiconductor sector.
“These plans must promote coordination and the exchange of information between the key players in the semiconductor sector, and promote economic competition,” he commented.
Strategies to boost the semiconductor industry in Mexico must avoid “protectionism, public investment or non-strategic subsidies for some specific (or well-connected) companies,” commented the representative of the organization created with the North American Free Trade Agreement in 1992 with the support of organizations from the United States and Mexico.
Fumec’s mission is to promote binational competitiveness through the use of Science and Technology to solve problems and enhance opportunities. His vision is to make the United States and Mexico the most inclusive, competitive and sustainable region in the world.
Mexico emerges as a key economic partner in the effort to transform North America into the world leader in the supply chain, said Eugenio Marín.
And that is why they seek to identify the specific conditions and recommendations to take advantage of the opportunities of the semiconductor industry so that it can be strengthened in Mexico, a nation that already has a presence of companies in Aguascalientes, Baja California, Chihuahua, Jalisco, Querétaro and Tamaulipas.
Growing geopolitical tensions, the reconfiguration of international trade flows and alarming global climate and health risks have made the resilience of supply chains as important as their efficiency.
As a result, the long-term stability and viability of the North American manufacturing base will depend on the relocation of specific supply chain activities to Mexico.
Among the major industrial sectors, none has greater strategic and economic importance than semiconductors, which have become essential components of most manufactured products, said the director general of the Mexico-United States Foundation for Science.
Mexico, on the one hand, is taking a proactive approach to stimulate investment in semiconductors, he said.
As of June 2024, the government of Andrés Manuel López Obrador has endorsed a collaboration agreement between key Secretaries in charge of finance, economic development, environmental protection, infrastructure, communications, transportation and energy, he recalled.
The purpose of this collaboration agreement is to promote the semiconductor industry in Mexico, he added.
“Mexico currently lacks a deep analysis of the opportunities, challenges and
capacity requirements that the public and private sectors must address to ensure Mexico’s place in the regional semiconductor supply that is being built,” commented Eugenio Marín.
He stated that state governments, business associations and universities can play an important role in creating local connections between companies and financing opportunities that drive nearshoring investment projects.
To boost the semiconductor industry, the Mexico-United States Foundation for Science presented a series of actions:
Infrastructure. Take advantage of or obtain the financial resources necessary to build specific facilities for semiconductors, such as laboratories, clean rooms and test centers.
Supply chain. Use data on global trade patterns, especially from East Asia, to identify the stages of the semiconductor supply chain in which Mexico has the greatest potential. In addition, streamline or eliminate regulations that impede Foreign Direct Investment (FDI). Also, collaborate with North American anchor companies in the spaces of the supply chain that Mexican small and medium-sized companies can cover.
Workforce. Promote collaboration and information exchange between industry and academia to complement university programs with specific curricula for semiconductors. Use feedback from key companies to identify, train, hire and retain workers with the technical capacity necessary to carry out specific stages of the semiconductor supply chain.
Innovation. Direct more investments in research and development (R&D) towards semiconductor sector processes, reorient existing R&D activities to develop the capacity of companies towards the semiconductor sector, seek contractually mandated technology transfer, and strengthen intellectual property (IP) protection.
Entrepreneurship. Create or reorient financing mechanisms towards new companies and incubators that contribute to innovation in semiconductor supply chains. Generate incentives and raise awareness about the adoption of internal integrity practices that generate the trust necessary to establish long-term partnerships. These practices include codes of conduct,
anti-corruption protocols, intellectual property protection, confidentiality, and whistleblowing.
Sustainability. Identify “circular economy” practices—for example, recycling and reuse—that are prioritized by anchor companies, and link actual or potential suppliers with university and internship programs in economic sustainability practices.
Source: forbes
