Tuesday, December 6, 2022

Mexico is looking up incentives to entice investment in semiconductors

According to the economy minister of the Latin American country, Mexico is mulling incentives to entice private investment in semiconductors, capitalizing on a US attempt to move chip production closer to home.

Tatiana Clouthier stated on Friday that the Finance Ministry is reviewing suggestions in order to determine how best to assist businesses who are considering growing their presence in Mexico. The auto, electronics, and aerospace industries will benefit from more investment in Mexico, she continued.

“We could have mechanisms to make investment more attractive for companies that relocate,” Clouthier told Bloomberg News in an interview, saying she’s in touch with the Finance Ministry to discuss what can be done to support innovative industries that could boost employment. “We think that for these sectors there should be certain kinds of assistance.”

After the US Congress passed the CHIPS Act, which includes around $52 billion to advance domestic semiconductor production and research, the ministry organized a meeting with US investors earlier in August to explore the benefits of investing in Mexico. Mexico may be a “critical ally,” according to a statement released by the Economy Ministry following the event.

Although the government has pushed businesses to shift to southern states, where there is more water available, Clouthier mentioned Jalisco and Aguascalientes as prospective investment regions. Monterrey and other northern towns have been affected by the drought, and President Andres Manuel Lopez Obrador has urged water-intensive industries to scale back their operations.