Semiconductor Investment Revisited: The USMCA, Mexico, and <em>Maquiladoras</em>

The COVID-19 pandemic and subsequent supply chain crunch brought a significant shortage to global semiconductor manufacturing, affecting a multitude of businesses and consumers. The Biden Administration recognized this serious issue with the passage of the CHIPS Act and the significant amount of investment allocated toward domestic semiconductor manufacturing. The Trump Administration has taken a different approach and has thus far relied on tariff applications to gain favorable policy concessions. At the Trump Administration’s fingertips, however, is the most modernized trade agreement in the world, the USMCA. Through the agreement, North America—specifically the United States and Mexico—is primed to facilitate broad semiconductor investment throughout the continent. This Note argues that the USMCA should include a provision specific to semiconductor investment in the 2026 joint review. Additionally, this Note proposes that a semiconductor provision could take lessons from the maquiladora system of the past, existing USMCA provisions, NAFTA investment arbitration, and current geopolitical tension to guide its construction.