Umer Gujjar
NEW YORK : In a bid to bolster semiconductor production across the Western Hemisphere, the U.S. Department of State, in collaboration with the Inter-American Development Bank (IDB), has unveiled a transformative initiative: the CHIPS ITSI Western Hemisphere Semiconductor Initiative.
This groundbreaking effort, supported through the CHIPS Act International Technology Security and Innovation (ITSI) Fund, aims to enhance semiconductor assembly, testing, and packaging (ATP) capabilities in key partner countries, starting with Mexico, Panama, and Costa Rica.
The initiative is poised to bring about significant advancements in the semiconductor ecosystems of these nations.
The IDB will play a pivotal role, supporting public-private partnerships and implementing OECD recommendations tailored to the specific needs of each country.
This collaborative effort underscores a commitment to international policy alignment and sustainable economic development, aiming to create a robust and resilient semiconductor supply chain in the region.
Building on the IDB’s ongoing work through the Americas Partnership for Economic Prosperity, the CHIPS ITSI Western Hemisphere Semiconductor Initiative is set to strengthen the competitiveness of regional semiconductor supply chains.
By fostering innovation and enhancing local capabilities, the initiative will not only boost the technological prowess of Mexico, Panama, and Costa Rica but also set a precedent for inclusive economic growth and global technological advancement.
Commencing in 2024 and continuing through 2026, the initiative represents a significant step forward in regional economic development.
The ITSI Fund’s support for a semiconductor-focused multilateral platform aligns with the broader objectives of the Americas Partnership for Economic Prosperity, further cementing the region’s role in the global semiconductor landscape.
Through these concerted efforts, the CHIPS ITSI Western Hemisphere Semiconductor Initiative aims to create a thriving semiconductor industry in the Western Hemisphere, ensuring that partner countries are well-equipped to meet the demands of the rapidly evolving global technology market.
