Mexico will close business with more than 10 Taiwanese chip companies – El Financiero

Mexico will close business with more than 10 Taiwanese chip companies – El Financiero
Mexico will close business with more than 10 Taiwanese chip companies – El Financiero

Mexico is in negotiations with more than a dozen Taiwan companiesthe leading country in the world manufacturing of industrial semiconductors, while The US announced an alliance to strengthen the region in the development of these microcomponents essential for some sectors such as the automotive industry.

Armando Cortesgeneral director of the National Auto Parts Industry (INA), told El Financiero that The country has become a pole of attraction for investments for the global semiconductor supply chain, which suffered a shock during the pandemic that paralyzed many industries, including automobile manufacturing.

“At the moment, There are a number of Taiwanese companies already located in Mexico; Perhaps the most representative ones are between 5 and 10 companies. We are going to hold business meetings, we hope that around 10 Taiwanese companies will be looking for business meetings in Mexico,” she said in an interview.

For almost a year now, Mexico has received a delegation of more than 20 companies and representatives of the Taiwan Foreign Trade Development Council (TAITRA), of the Taiwan Electrical and Electronic Manufacturers Association (TEEMA) and the Taiwan Printed Circuit Association (TPCA), with businessmen and national chambers.

The main interest is in finding new opportunities, mainly for the semiconductor industry with the relocation of companies (nearshoring) in North America.

“We are seeking to promote strategic partnerships between Mexican and Taiwanese companies linked to high-tech and vehicle electronics projects mainly; We have a couple of business meetings that we are going to hold this year with Taiwan companies to identify projects on powertrain issues or electronic modules within vehicles,” Cortés added.

The representative of the auto parts industry explained that currently the region of North America has a very high dependence on semiconductors that come from Asiaas well as other components such as electric batteries.

According to a report by the international consulting firm TrendForce, only at the end of 2023 will the Taiwanese semiconductor manufacturer TSMC became the largest company in the world with income for the last quarter of up to 19 thousand 669 million dollarsfollowed by the South Korean Samsung with 3,619 million dollars in sales and in third place is the American GlobalFoundries with 1,854 million dollars.

Lead Taiwan

“The dependence on US semiconductors is very high from Asia, 70 percent of the semiconductors that the US uses in the digital industry come from Taiwan and in that sense for the first time in public policy (of the Biden administration) and in the law The need to have a public policy to promote semiconductors in the region is mentioned,” he insisted.

It is worth mentioning that recentlyin April 2024, the US government announced an alliance with Mexico to boost semiconductor investment and design in the region, given the great challenges that the automotive industry faces with electromobility, as well as the progress in others such as medicine, the technology industry, household appliances and Artificial Intelligence.

The alliance between both countries proposes the creation of an International Fund for Security and Technological Innovation (ITSI), created by the CHIPS (Creating Helpful Incentives to Produce Semiconductors) Act of 2022.

“This fund provides the State Department with $500 million, that is, $100 million annually for five years, to globally promote the development and adoption of secure and reliable telecommunications networks, as well as to ensure security of semiconductor supply chains and their diversification,” the Biden government reported in a statement.

Mexico has stood out for participating in the stage of microchip or semiconductor design for the entire industry, with big projects like Intel in Guadalajara, skyworks in Baja California, Infineon, QSM Semiconductors and Qualcommamong others.

According to a survey by the consulting firm KPMG, in 2024 the automotive sector, AI, the Internet of Things, Data Centeryes and telecommunications will drive demand for semiconductors.

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