Just six weeks after Mexico and the United States announced an initiative to “grow and diversify the global semiconductor ecosystem,” the agreement is already paying dividends.

This week, Idaho-based Micron Technology announced plans to establish a semiconductor engineering center in Guadalajara with the expectation of hiring 100 employees by the end of this year.

The core objective of the Mexico-U.S. semiconductor initiative is to consolidate the development and production of semiconductor technology in the two countries. It included a US $6.14 billion subsidy from the U.S. Department of Commerce to Micron Technology.

Micron’s selection of Guadalajara will boost the region’s technology ecosystem and allow for collaborative opportunities with local universities while also cultivating the next generation of engineering and technology professionals.

The new facility will be the first headquarters in Latin America for Micron, which produces computer memory and computer data storage including dynamic random-access memory, flash memory and USB flash drives.

Mexico’s strategic location and its numerous international trade agreements were factors in the company’s decision to open a facility in Mexico, especially as the U.S. government seeks to reduce reliance on China and Taiwan for chips.

Brian Callaway, the country manager for Micron in Mexico, spoke to Expansión magazine about the move to Mexico. “As we ramp up manufacturing in the United States, we need to maintain product innovation and that’s where our new site in Guadalajara enters the picture. It will be critical in developing solutions for next generation products,” he said.

Micron’s facility in Mexico will focus on developing products for memory solutions oriented toward fortifying the latest Artificial Intelligence tools, Callaway said.

Scott DeBoer, executive vice president of technology and products at Micron, praised Mexico’s experience in the semiconductor sector. “Mexico has a strong business ecosystem that encompasses technology and the semiconductor industry and also has an extremely talented labor force,” he said. “The engineering center and its operations in Mexico will complement Micron’s product engineering efforts in North America.”

April Arnzen, Micron’s executive vice president and personnel director, spoke highly of the Mexican labor force, saying it will “reinforce Micron’s leadership and innovation,” citing the performance of local hires at other technology companies such as Intel which also has a design center in Guadalajara.

With reports from Expansión, El Economista and Mexico Business News