US, Mexico plan to cooperate on semiconductors, electric vehicles

by Nov 25, 2022

Mexico was invited to take part in a push to move semiconductor manufacture from Asia to North America and increase the production of electric vehicles by a high-level US delegation. Mexico can take benefit from newly passed U.S. legislation that offers $28 billion in incentives for semiconductor production, $10 billion for new chip manufacturing, and $11 billion for R&D. The Biden administration’s significant investment in semiconductor manufacture will be used by Mexico and the US to advance supply chain integration and work together to increase the production of electric vehicles through Mexico’s nationalized lithium industry.
A crucial part of the batteries used in electric vehicles is lithium. The state-run lithium firm was established by the Mexican government to handle the mineral’s discovery and extraction. Major components of the supply chains for semiconductors are already well established in Mexico, where U.S.-based companies like Intel and Skyworks carry out research and development, design, assembly, and test manufacturing.
The economy of Mexico will benefit greatly from this venture. Another new U.S. legislation intends to encourage the shift to electric vehicles and the manufacturing of the batteries they require in the continent. The manufacturing of vehicles has been affected due to the global shortage of semiconductors and supply chain, which has led to high inflation and made the partnership between the two countries a significant market step.

You can reach to news at here