US to collaborate with Mexico on semiconductor supply chain

US partners with Mexico: The State Department announced on Thursday that the United States will collaborate with Mexico to explore opportunities within the semiconductor supply chain. This partnership comes as part of the US CHIPS Act, a legislation passed in 2022, which allocated a $500 million fund to enhance the semiconductor supply chain through alliances with allies and partners.

According to a statement from the department, the collaboration aims to address the Biden administration's goal of reducing dependence on China and Taiwan for semiconductor technology. The statement highlights the critical role of the semiconductor supply chain in manufacturing essential products such as vehicles and medical devices, highlighting the need for its strength and resilience.

The partnership will start with an evaluation of Mexico's existing semiconductor industry, regulatory framework, and workforce requirements, as outlined by the department.

As of now, there has been no immediate response from Mexico's economic ministry regarding the State Department's announcement.

(With Reuters inputs)