A New Initiative for the Americas
Secretary of State Antony Blinken unveiled a new plan to boost semiconductor production in the Americas. This initiative aims to reduce dependence on China, which dominates this crucial sector. Speaking at a meeting with counterparts from 11 Latin American countries, Blinken emphasized the importance of semiconductors in modern industry. He highlighted their use in everything from cell phones to refrigerators to weapons systems.
“This initiative will turbocharge countries’ capacity to assemble, test, and package semiconductors,” Blinken said. The plan will start with Mexico, Panama, and Costa Rica. By increasing production capabilities, the Americas can play a bigger role in the global semiconductor supply chain.
Investment and Infrastructure Proposed by Bliken
Blinken also called for more investment in the Americas to promote the energy transition away from fossil fuels. He recalled that the 12 countries at the meeting previously stated a goal to earmark $3 billion for infrastructure investment. This investment will support the energy transition and enhance the region’s economic stability.
The meeting was part of the Americas Partnership for Economic Prosperity, a program President Joe Biden launched two years ago. The next summit of this forum is scheduled for next year in Costa Rica.
Competing with China
The United States is working to compete with China in Latin America mainly through private investment. China has been pouring massive amounts of money into infrastructure programs in the region. However, the US argues that this flow of money leaves host countries with excessive debt.
By working with countries in the region, the US aims to diversify semiconductor supply chains. This strategy will chip away at the world’s dependence on China for this technology. Diversifying supply chains will also enhance economic resilience in the Americas.
Blinken’s plan for boosting semiconductor production in the Americas marks a significant step toward reducing global dependence on China. By investing in infrastructure and promoting the energy transition, the US and its partners can strengthen economic prosperity in the region. The upcoming summit in Costa Rica will provide an opportunity to further these goals and ensure a more secure and diversified semiconductor supply chain.