Mexico evaluates incentives to attract investment in semiconductors

(Bloomberg) — Mexico is evaluating incentives to draw private investment into the semiconductor sector, taking advantage of the United States’ push to bring chip production closer to home, according to Latin America’s economy minister.

Tatiana Clotheer said Friday that the government wants to help companies considering expanding their presence in Mexico and that the Ministry of Finance is evaluating the proposals. He added that additional investment in Mexico would benefit the automotive, electronics and aviation industries.

Clutter told Bloomberg News in an interview that there may be “mechanisms to seek investment greater than transportation,” and he said he was in touch with the Treasury to discuss what could be done to support innovative industries that could boost employment. “We think there should be certain types of support in these sectors.”

The secretary did not clarify what kinds of incentives were being discussed.

In early August, the secretariat held a forum with US investors to discuss the merits of investing in Mexico after the US Congress approved CHIPS, which includes about US$52 billion to increase production and research on semiconductors nationwide. In a statement after the event, the Economy Ministry said Mexico could be a “key ally”.

Clotheer has identified the states of Jalisco and Aguascalientes as potential investment areas, although the government has also encouraged companies to settle in southern states, where more water is available. Drought has affected northern cities like Monterrey, and President Andres Manuel Lopez Obrador has asked companies that consume a lot of water to reduce their production.

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Mexico considers incentives to attract investment in semiconductors

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