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Today, we're covering the burgeoning semiconductor industry in Mexico. These tiny tech marvels—better known as microchips—are at the heart of everything from your smartphone to electric cars. 

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TOP STORY 

Semiconductor Chip Production: Historic Opportunity for Mexico

Earlier this year, the U.S. and Mexico announced a major partnership in the semiconductor industry, positioning Mexico as a potential key player in the global chip market.

Tell me more.

Semiconductors, often referred to as microchips, are essential components in modern technology. They are found in almost every electronic device you can think of, like smartphones, computers, drones, electric cars and medical equipment. The global importance of these chips became very clear during the COVID-19 pandemic when a major chip shortage disrupted the production of countless products across various industries.

Currently, countries like Taiwan, South Korea, and China lead the world in semiconductor manufacturing. This is a huge and fast-growing industry, with revenues expected to exceed $588 billion by 2024 and possibly reach $1.2 trillion by 2032.

Let’s unpack this.

As the US-China relationship cools off, the U.S. is looking closer to home for its semiconductor supply chain. In October last year, the U.S. and Mexico launched a “semiconductor action plan” to make North America a leading region for chip production. 

By March, they had announced a new initiative to boost Mexico's role in this industry as part of the Western Hemisphere Semiconductor Initiative. This partnership aims to build a semiconductor supply chain that is resilient, secure and sustainable.

There are mixed opinions about Mexico's potential in this field. On the optimistic side, Mexico has several strategic advantages, such as its proximity to the U.S., existing trade agreements, a growing pool of skilled workers, and ample resources. These factors could make it a strong contender in the semiconductor market.

However, some experts are cautious, pointing out the challenges Mexico faces. Producing semiconductors, especially the most advanced ones, requires highly specialized skills and technology. Critics argue that Mexico might be better suited to handle the less complex parts of the production process, such as testing and packaging chips, rather than the intricate manufacturing of the chips themselves.

What does this mean?

Mexico will need to address several issues to get a piece of the semiconductor pie. Improving infrastructure, expanding education and training programs for a skilled workforce, and ensuring strong security measures to combat organized crime are all crucial steps. 

An added element of uncertainty lies in the potential judicial reforms which some argue could affect the 2020 U.S.-Mexico-Canada trade agreement (USMCA). Any reforms that weaken the rule of law or judicial independence might cause concerns for trade partners.

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🏎 Mexico City race added to 2025 NASCAR Cup Series. 

⛽ Sheinbaum names Víctor Rodríguez Padilla as the next Pemex CEO.

👟 Over 30,000 runners took part in the 41st annual Mexico City marathon.

🚚 Volvo invests US$700 million in a new truck plant in Mexico.

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CULTURE & HAPPENINGS

• Thur, Aug 29: Ashley Audrain book club 📚

• Fri, Aug 30: Bachata & salsa social 💃🏻 

• Sat, Aug 31: Jazz night @ Cineteca 🎷

• Sun, Sep 1: Diaspora Sunset @ Tonal 🪩

• Tues, Sep 3: Doing Business in Mexico 📈

• Wed, Sep 4: Mundo Lingo weekly social 🤝

DID YOU KNOW?

It’s chiles en nogada season? Chiles en nogada is a traditional Mexican dish featuring poblano peppers stuffed with a savory-sweet mix of meat, fruits, and spices, topped with a walnut sauce, pomegranate seeds and parsley to represent the colors of the Mexican flag. The dish originated in Puebla in the 1800s and was created by nuns after Mexico gained independence from Spain. The dish has become a symbol of Mexican patriotism, especially enjoyed in August and early September during pomegranate season, aligning with independence celebrations.

ODE TO MEX

This section showcases my love of Mexican art, films and music. I offer a handpicked recommendation to deepen your connection with this magical country and its people.

Natalia Lafourcade is a Mexican national treasure and one of my all time fave artists. Enjoy her 2017 TinyDesk Concert here.

VIRAL VAULT

Welcome to our reel-y awesome corner, where memes reign supreme and giggles are guaranteed.

• Whitexican tries to get a glamorous job

• The US-peso conversion has some of us feeling this way

• When did your relationship trust issues start? This moment 

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