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Market News

UPDATE 1-US, Mexico to partner on semiconductor supply chain development
28-Mar-24 15:12

(Adds background from State Department in paragraphs 2-4)

       WASHINGTON, March 28 (Reuters) - The United States will

partner with Mexico to explore semiconductor supply chain

opportunities, the State Department said on Thursday, as the

Biden administration pushes to reduce reliance on China and

Taiwan for the technology.

    The collaboration will take place as part of the U.S. CHIPS

Act, a 2022 law that created a $500 million fund for developing

the semiconductor supply chain through initiatives with allies

and partners.

    "Manufacturing of essential products ranging from vehicles

to medical devices relies on the strength and resilience of the

semiconductor supply chain," the department said in a

statement.

    The partnership will begin with an assessment of Mexico's

existing semiconductor industry, regulatory framework and

workforce needs, the department added.

        Mexico's economic ministry did not immediately respond

to a request for comment on the State Department's announcement.

(Reporting by Kanishka Singh and Katharine Jackson with

additional reporting by Valentine Hilaire; editing by Rami

Ayyub)

((Katharine.Jackson@thomsonreuters.com; 202-898-8300;))

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