Mexico has unveiled an ambitious plan to develop its own semiconductor industry, starting with the creation of the Kutsari National Semiconductor Design Center. This initiative is part of a broader strategy to strengthen Mexico’s technological independence and reduce its reliance on imported chips, which exceeded $24 billion in 2023.
President Claudia Sheinbaum emphasized that this project aligns with the Plan Sonora and the development of Mexico’s first electric vehicle, Olinia. She underscored the need for scientific and technological self-sufficiency to secure the country’s place in the global semiconductor market.
The Vision Behind Kutsari: Mexico’s Semiconductor Revolution
The Kutsari Center, named after the Purépecha word for “sand” (a nod to silicon, the foundation of semiconductors), is the first step in Mexico’s plan to enter the high-tech industry.
The initiative involves:
- Leading universities and research centers, including UNAM, IPN, and INAOE.
- Patent reform to accelerate chip design registration.
- Collaboration between public and private sectors to develop local semiconductor production.
Why Semiconductors Matter for Mexico’s Future
Semiconductors are the backbone of modern technology, essential in:
- Automotive manufacturing (key for Mexico’s car industry).
- Medical devices and consumer electronics.
- National security and defense applications.
With a global semiconductor market valued at $700 billion, Mexico is positioning itself as a key player in North America’s chip supply chain.
Mexico’s Three-Phase Semiconductor Strategy
The semiconductor plan is structured into three key phases:
Phase 1 (2024-2027): Establishing the Kutsari Semiconductor Design Center, focusing on research and patent development.
Phase 2 (2026-2029): Launching Mexico’s first semiconductor fabrication plant, potentially through a public-private partnership.
Phase 3 (2029-2030): Expanding chip assembly and packaging facilities to establish a fully integrated domestic industry.
Overcoming Challenges: Patent Reform and Industrial Growth
One of Mexico’s main hurdles has been its slow patent registration process, discouraging local companies from securing intellectual property rights domestically.
To address this, the Mexican Institute of Industrial Property (IMPI), led by Santiago Nieto, is implementing fast-track patent approvals for semiconductor-related inventions.
- 84 semiconductor patents have already been submitted by Mexican innovators.
- 28 additional applications are currently under review.
Mexico’s Global Position in the Semiconductor Race
While the U.S., Taiwan, and South Korea currently dominate semiconductor production, Mexico’s geopolitical advantage—proximity to North American markets and participation in USMCA trade agreements—positions it as an emerging competitor.
By investing in semiconductor self-sufficiency, Mexico aims to:
- Attract foreign investment from chipmakers.
- Enhance national security by reducing dependency on foreign-made chips.
- Strengthen its economy by entering a lucrative global market.
Final Thoughts: Can Mexico Become a Semiconductor Hub?
With the Kutsari Center, patent reforms, and industrial investments, Mexico is making a bold move to join the global semiconductor supply chain.
Although challenges remain—such as high production costs and the dominance of established players—Mexico’s commitment to tech innovation may soon make it a rising force in the semiconductor industry.
