Before reaching a device, a chip crosses borders, industries, and interests. Its journey starts underground, with the extraction of minerals like silicon, gallium, germanium, phosphorus, boron, and tantalum — many sourced from Latin American countries such as Brazil and Peru. According to the U.S. Geological Survey, the region supplies around 18% of the minerals essential to global chip manufacturing.

However, the strength of the production chain does not lie in resource extraction, but in controlling the subsequent stages. Chip conception and design largely take place in the United States and Asia, where giants like Nvidia, Apple, and Qualcomm develop the circuitry logic. Manufacturing is dominated by Taiwan, thanks to TSMC (Taiwan Semiconductor Manufacturing Company), responsible for about 70% of global chip production. In strategic areas such as artificial intelligence and defense, this dominance is even greater.

The final stage — assembly, testing, and packaging — is led by countries like Taiwan, China, South Korea, Vietnam, and Malaysia. No single nation controls the entire chain. The pandemic, wars, embargoes, and tensions in the Taiwan Strait have all exposed the fragility of this system — triggering global alarm.

Over the past three decades, chip production has shifted from the Atlantic to the Pacific. In 1990, the United States and Europe accounted for 75% of global manufacturing. Today, that share barely exceeds 30%. Asia reigns supreme — but new hubs are starting to emerge.

Still far from the innovation frontier, Latin America is beginning to gain relevance as a logistical link and strategic supplier. Mexico, for example, attracted Foxconn to build a plant dedicated to producing the GB200 chip, designed for artificial intelligence. In Brazil, Zilia Technologies announced a R$ 650 million investment in domestic production, while the Senate approved an incentive program for the semiconductor sector.

According to data from SiiLA, over the past five years, the number of tech-sector tenants in Mexico’s industrial property market has doubled. In Brazil, the growth has exceeded 20%. This is an important signal — but not enough. Expanding warehouse occupancy and integrating into the global logistics chain is only part of the challenge. Today, Latin America extracts what others process, transports what others assemble, and offers territory without defining the path.

Moreover, the region hosts vast industrial parks with the potential to manufacture and distribute equipment on a global scale. Logistics itself is constantly evolving in Latin American countries. The consumer market, especially in Brazil and Mexico, is also valuable. Coupled with all this is the proximity to the United States — one of the world's largest investors in technology — which represents a strategic advantage.

What remains now is for Latin American countries to invest in innovation and technological skills in order to secure a leading role in the new global value chain.