On the maps of technological geopolitics, Latin America often appears as a gray area: a supplier of raw materials, a consumer of devices, absent from chip manufacturing. But that image is beginning to change. The trade war between the United States and China, coupled with growing demand for semiconductors for electric vehicles, home appliances, and artificial intelligence, has opened a window of opportunity for countries like Mexico, Brazil, and Costa Rica to leap toward technological sovereignty.
Mexico is already the seventh-largest exporter of electronic products in the world, and its proximity to the United States makes it a strategic partner for chip assembly.
The global semiconductor chessboard
Since the pandemic revealed the fragility of supply chains, governments around the world have rushed to secure access to microchips. The United States passed the CHIPS Act in 2022, Europe launched its own alliance, and Taiwan remains the epicenter of advanced production. But in the midst of this tension, companies are looking to diversify their assembly and packaging plants, and that is where Latin America is beginning to sound attractive.
Mexico, the strategic neighbor
With over 40 years of experience in electronics manufacturing, Mexico has attracted investments from companies like Intel, which already has a design center in Guadalajara, and from other Asian firms looking to set up assembly plants on the northern border. The relocation of chains, known as 'nearshoring,' has driven the construction of specialized industrial parks for semiconductors in states like Jalisco, Nuevo León, and Baja California.
What is 'nearshoring'?
It is the practice of moving industrial production to countries close to the consumer market, rather than relying on distant factories. In the case of semiconductors, Mexico benefits from its proximity to the United States.
Brazil and the bet on own design
Brazil, for its part, has opted for a different strategy: fostering chip design. For years, the country has had the Renato Archer Information Technology Center, which develops microelectronics projects. In 2025, the government launched a tax incentive program for semiconductor startups, and companies like CEITEC are seeking to scale up local chip production for applications in precision agriculture and renewable energy.
The challenges ahead
Despite the enthusiasm, the region faces structural obstacles. Lack of investment in basic research, a shortage of specialized engineers, and dependence on foreign technology for the most complex processes —such as 7-nanometer lithography— limit ambitions. Moreover, chip manufacturing requires ultrapure water and a stable electricity supply, two resources not always guaranteed in countries with recurring droughts or fragile power grids.
It is estimated that by 2030, global semiconductor demand will be 70% higher than in 2020, making it urgent for Latin America to define its role in the chain.
What does this mean for the world?
If Latin America manages to insert itself into the global semiconductor chain, even in the assembly and packaging links, the geopolitical board would diversify. Less dependence on Asia, more resilience in supply chains, and an opportunity for the region to move beyond its historical role as a mere exporter of raw materials. The race for technological sovereignty is not won overnight, but the Global South is already making its moves.