Mexico, along with Costa Rica and Panama, is preparing to start the production of microchips, assemble, test, and package semiconductors, although the country is left out of the early stages where the highest margins are found, which will take place in the United States. The semiconductor manufacturing process consists of three stages: design, manufacturing, and assembly.
The U.S. government is determined to regain leadership in the semiconductor market and has allocated a fund of 52 billion dollars for this purpose. In June 2022, Secretary of State Antony Blinken and Secretary of Commerce Gina Raimondo invited Mexico to participate in the value chain in this sector.
Through the USMCA, it was identified that Mexico, Costa Rica, and Panama have the opportunity to engage in the assembly, validation, and packaging of semiconductors. In June, the Federal Government published an agreement to promote the semiconductor industry in Mexico, in which several state secretaries are involved.
The combined value of the microchip and semiconductor industry amounts to nearly one trillion dollars, over 60% of Mexico's GDP. These industries are expected to grow between 10% and 20% annually over the next ten years. The evolution of automobiles, both conventional and electric, involves a higher demand for microchips.
Companies like Foxconn have announced the construction of a superchip production plant in Jalisco, with minimal tax incentives. Mexico has the opportunity to become a center for innovation and development in the field of information and communication technologies.
It is expected that the signed agreement will mainly focus on the automotive industry. In 2022, Bursamétrica estimates that the global microchip market is valued at 600 billion dollars. However, so far, Mexico has not fully leveraged its potential in this area.
