Mexico launched the "Kutsari Project" to transform its semiconductor sector by improving design capabilities, revising patent laws, and establishing dedicated R&D centers. This initiative comes as global semiconductor competition intensifies, and Mexico lags despite significant commitments, necessitating swift advancement.
Mexican President Claudia Sheinbaum has announced the launch of the "Kutsari Project," an ambitious initiative aimed at bolstering Mexico's semiconductor industry, thereby staking a strategic claim in the global semiconductor design and manufacturing sector. This development comes under the leadership of the newly formed Ministry of Science, Humanities, Technology, and Innovation (SECIHTI), reflecting Sheinbaum's dedication to technological advancement.
The project, named after the indigenous Purepecha word for "sand," a reference to silicon, seeks to enhance Mexico's capabilities in semiconductor design and forge collaborations with leading academic institutions. This includes partnerships with the National Institute of Astrophysics, Optics, and Electronics (INAOE), the Center for Research and Advanced Studies (CINVESTAV), the National Autonomous University of Mexico (UNAM), and the National Polytechnic Institute (IPN), all of which bring critical technical expertise to the initiative.
Centering on three key pillars—strengthening design capabilities, revising patent laws, and establishing dedicated R&D centers—the Kutsari Project is poised to reshape the landscape of Mexico's semiconductor sector.
Reports from RCR Wireless, Mexico Business, and Infobae highlight the project's inclusion in Sheinbaum's broader "Mexico Plan," scheduled for unveiling in January 2025. This comprehensive plan aims to spur economic development, boost local manufacturing output, and reduce dependency on imports from countries like China.
Sheinbaum underscored the importance of leveraging Mexico's existing technological research resources to fuel local industry growth. The initiative is expected to generate thousands of engineering and technology jobs as it integrates local talent and resources into a cohesive development strategy.
In an effort to expedite technological innovation, the government intends to amend the Federal Law for the Protection of Industrial Property, thereby streamlining patent processes and easing the commercialization pathway for new technology.
Santiago Nieto, Director of the Mexican Institute of Industrial Property (IMPI), remarked on the vital need to bolster Mexico's patent culture to secure and promote local innovations. He asserted that semiconductor patents will receive prioritized examination and protection as part of this national initiative.
As Mexico seeks to make its mark on the global semiconductor stage, the Kutsari Project represents a significant milestone in the country's quest for economic and technological advancement.
Three-phase roadmap
The Kutsari Project aims to decrease import dependence and attract foreign investment through a three-phase plan. SECIHTI Minister Rosaura Ruiz highlighted Mexico's robust industrial base and extensive semiconductor production experience but acknowledged that the country still imports over US$20 billion in semiconductor products annually across the electronics, telecommunications, and automotive sectors.
The project's initial phase, from 2024 to 2027, will establish a National Semiconductor Design Center and additional hubs in Puebla, Jalisco, and Sonora to enhance chip design and technology. From 2027 to 2030, the focus will shift to constructing local wafer fabrication facilities, initially supporting mature process nodes for industries like automotive and consumer electronics, then advancing to chips for mobile, satellite, AI, and medical purposes.
Post-2030, the final phase will develop semiconductor testing, packaging, and assembly capabilities, aiming to position Mexico as a significant player in the global semiconductor supply chain.
Global semiconductor competition and Mexico's urgency to catch up
In an age where semiconductors are essential for modern technology, from smartphones to defense systems, the global race to dominate this crucial industry is heating up. Geopolitical tensions and national security concerns are prompting countries to restructure supply chains and reduce reliance on single sources.
In the face of intense competition, Mexico is advancing with the Kutsari Project, an ambitious plan to establish a strong presence in the global semiconductor industry through technological innovation and industry development. However, Mexico is entering the race later than many major global economies.
Four years ago, the EU launched an ambitious plan to capture 20% of the global semiconductor market by 2030, backed by billions of euros in investment. In contrast, the UK presented its strategy with a more modest funding of GBP1 billion (US$1.24 billion), which experts consider inadequate in the face of intense global competition.
Across the Atlantic, the US, under the leadership of the Biden Administration, enacted the CHIPS and Science Act, channeling a formidable US$52 billion toward semiconductor research and manufacturing efforts. Not to be outdone, China has laid out a considerable US$143 billion investment plan, spread over five years, to bolster its domestic semiconductor capabilities and reduce its dependence on international technologies.
The US implemented the CHIPS and Science Act, allocating US$52 billion to boost semiconductor research and manufacturing. Meanwhile, China has planned a significant investment of US$143 billion over five years to enhance its domestic semiconductor industry and lessen reliance on foreign technologies.
As nations strengthen their foothold in the semiconductor sector, Mexico must urgently catch up. The Kutsari Project's success depends on substantial investment and Mexico's effective use of these funds to overcome early setbacks and compete globally.
