The United States will partner with Mexico to explore semiconductor supply chain opportunities, the State Department said on Thursday, as the Biden administration pushes to reduce reliance on China and Taiwan for the technology.

The collaboration will take place as part of the US CHIPS Act, a 2022 law that created a US$500 million (S$674 million) fund for developing the semiconductor supply chain through initiatives with allies and partners.

“Manufacturing of essential products ranging from vehicles to medical devices relies on the strength and resilience of the semiconductor supply chain,” the department said in a statement. 

The partnership will begin with an assessment of Mexico’s existing semiconductor industry, regulatory framework and workforce needs, the department added.

Mexico’s economic ministry did not immediately respond to a request for comment on the State Department’s announcement.