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Silicon
Border Development, a global developer of industrial parks
catering to high-technology industry, announced it has signed an
exclusivity agreement with the state of
Baja
California to create a specialized industrial park called
Silicon Border in Mexicali that will establish an attractive
strategic alternative for cost-effective and centralized
semiconductor operations in North America.
Silicon Border will improve upon the world’s leading technology
parks to meet the sophisticated operational requirements and
workforce demands of semiconductor supply chain operations.
The project includes:
•A 10,000-acre park with immediate site access.
•Abundant natural resources – water and clean power.
•Advanced utility and access infrastructure.
•Specialized treatment, recycling, security and fire protection
systems.
•U.S. participation in process and operations.
•World-class management services.
•On-site education facilities.
•University-sponsored technical curricula.
•Involvement in multi-income housing and recreation.
“This joint commitment among federal government, state
government and private enterprise is indicative of a growing
confidence in Mexico’s national economy and its emerging role in
a technology-driven global economy,” said Gov. Eugenio Elorduy
Walther of Baja California. “The state of Baja California is
proud to support the national economic initiatives introduced by
President Fox with a collaborative agreement to establish a
world-class center for semiconductor operations in our capital
city that will help drive the industry and our country forward
into an exciting future.”
The agreement with Baja California grants Silicon Border
exclusivity for technology-focused park development, including
commercial land use and access to mission-critical water,
electricity and gas in a 15-square mile area just a couple of
hours from San Diego and Imperial Valley.
The new economic initiatives presented in April to industry
executives offer an income tax structure and incentive package
to semiconductor and other high-tech manufacturing operations
that make Mexico extremely competitive with Asian countries
currently offering incentives to the industry. The incentives
include:
•Application of NAFTA-based safe harbor provisions.
•Advanced asset deduction for investment in production
facilities and equipment.
•Tax-free periods for companies with wafer fab costs of up to $2
billion.
“Mexicali offered the ideal combination of must-have
environmental elements – natural resources, proximity to the
U.S. semiconductor community and a thriving local economy – so
federal support was the remaining factor to attract our
capital-intensive industry to the region,” said DJ Hill,
chairman of Silicon Border. “Building upon the NAFTA foundation,
the leadership of the Mexican government has responded beyond
our expectations to enable a very competitive North American
manufacturing environment that will contribute to the stability
and success of the global high-tech supply chain.”
With a population of three-quarters of a million people and a
strong manufacturing community, Mexicali offers local access to
abundant water from the Colorado River, electricity from the
United States and Mexico and the educational infrastructure of
two major universities in the area. In nearby Calexico, Calif.
management and technical staff can live with their families,
attend schools and be part of a familiar community while working
a few minutes away in Mexicali. The modern housing and
infrastructure of the Imperial Valley Region surrounding
Calexico offers virtually unlimited space to grow for the
current county population of 142,000, as well as proximity of
material, equipment and service companies to factories without
locating outside the United States.
“It’s time to introduce the U.S. semiconductor community
to the land of opportunity right under our noses,” said Ron...
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