Infrastructure

 

To ensure that the infrastructure in the park is world-class in both quality and cost-effectiveness, Silicon Border Development is overseeing the construction of all roads and utilities, including water treatment and distribution, electrical power distribution and IT backbone. Funded by ING/Clarion, the infrastructure will provide an optimal environment for science and technology manufacturing.

Electrical Power: Silicon Border has three separate sources of electrical power, two separate, gas-fired electrical generation plants and a geothermal electrical plant, all within several miles of the site.

Water: Silicon Border will operate its own potable water treatment and distribution facilities, allowing the park to offer water at prices approximately 20 percent lower than those available elsewhere in the region.

LEED-Conforming Construction: Leadership in Energy and Environmental Design (LEED) encourages and accelerates adoption of sustainable green development and building practices. All buildings within the Silicon Border Science Park will be constructed with LEED certification as an objective.

Border Crossing: Both the U.S. Department of State and the Mexican Department of State have designated an area immediately north of Silicon Border as the next border crossing for the Mexicali area.

 

Incentives for Tenant Companies

 

Low Corporate Tax Rates and Tax Holidays: The state and federal governments are willing to grant multiple-year tax holidays for employers meeting specific criteria. The Maquiladora program can provide foreign-owned companies with a preferential tax structure, resulting in virtually no liability for corporate income taxes. In addition to income tax, tax holidays are available for payroll and education taxes.

 

Training Reimbursement: The state of Baja California has a number of programs to reimburse employers for training delivered to their employees. In addition to providing instructors to deliver content defined by the employer, reimbursement is offered to compensate for the time spent in classroom and on-the-job training.

 

R&D Tax Credits: Research and development will receive a tax credit of 30 percent from the expenses and investments made in a project. This credit is against income tax generated and can be carried forward for 10 years.

 

Risk Diversification: Companies manufacturing in multiple low-cost jurisdictions mitigate the risk of geographic or political interruptions upon their business. Earthquakes, hurricanes and other natural occurrences can provide unforeseen business interruptions. Having geographically dispersed operations can provide additional assurance that customers can be effectively served regardless of outside events.

 

Benefits for Mexico

 

When Silicon Border is fully developed, tenant companies will employ approximately 100,000 people, in addition to jobs created by construction of the park, factories and supporting industry. Subsequent employment opportunities will also emerge through the surrounding economy, including housing, hotels, schools, recreation and retail.

As capital-intensive technology operations established in Mexico attract other opportunities throughout the supply chain, the strategic development of the industry will significantly increase long-term independence and resident technology expertise for the region and its growing population.