US reveals plan to boost chip support for LatAm
The US has launched the Western Hemisphere Semiconductor Initiative – a programme to expand semiconductor manufacturing across Mexico, Costa Rica and Panama.
US Secretary of State Antony Blinken announced the project this week to "identify ways that the region can play a larger role in the global supply chain for this critical technology". The aim is to on-shore chip manufacturing in the US and also to friendly allies such as those in the wider Americas. This is seen as a way of counter China's growing influence in Latin America.
According to a report in the South China Morning Post, Washington will fund the scheme in part from the USD 53 billion assigned by the 2022 Chips and Science Act.
The process began during the 2022 Americas Summit in Los Angeles, which comprised Barbados, Canada, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, Mexico, Panama, Peru and Uruguay. Then, in July 2023, the State Department announced an investment agreement with Costa Rica that will see Intel invest up to USD 1.2 billion in a chip assembly and testing facility.
"This initiative will turbocharge countries' capacity to assemble, test and pack semiconductors," Blinken said. "We have a historic opportunity to help realise the aspirations of our people, strengthen their faith in our democracies and build a more equitable, sustainable and prosperous region for everyone."
