The integration of the United States and China into the global semiconductor value chain, and Mexico?

Abstract

The article examines the operation of the semiconductor industry in the 21st century and discusses different industrial policy instruments adopted by the United States and China to advance towards a resilient and geographically proximate supply chain, particularly in light of the technological dispute between the two countries deepened by the 2020 health crisis. It reflects on the role that Mexico will play in this reconfiguration. The analytical framework of Global Value Chains and recent conceptual developments in industrial policy were used as a starting point. It is concluded that the chain predominantly exhibits relational governance, high entry barriers, and concentration. The high interdependence and specialization foster collaboration between global companies headquartered in the United States and Asia. The strategic alignment in North America, driven by the United States, will further enhance Mexico's integration into assembly, particularly in light of the manufacturing crisis since 2000 and the absence of active industrial policies.