Mexicali Silicon Border is a high-tech manufacturing park currently under construction near the border with California. The aim of the manufacturing park is to capitalize on Mexicali's proximity to Silicon Valley to lure some of the lucrative semiconductor manufacturing market to Mexico.
The Mexican Federal and Baja California governments have committed over $2 million to the project. Additionally, former President Vicente Fox offered 10 years of tax-free status to any firms that locate in the park and invest $1 billion or more. The cost of a single semiconductor manufacturing plant can top $1.5 billion.
California's Governor Arnold Schwarzenegger has repeatedly promoted cooperation with the project in his radio addresses.
The proximity of two new power plants is a major aide to this project, as manufacturing semiconductors requires a high-quality electricity supply.
As the project grows, it is slated to receive a dedicated power plant. Further infrastructure improvements associated with Silicon Border include a new highway and an additional border crossing.