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Insights on Foreign Direct Investment Trends with Pilar Madrigal of Costa Rica’s CINDE

Insights on Foreign Direct Investment Trends with Pilar Madrigal of Costa Rica’s CINDE

by | Apr 4, 2026 | Podcast

Pilar Madrigal
Expert in Foreign Direct Investment
CINDE
pmadrigal@cinde.org

LATAM FDI: Today, we have Pilar Madrigal with us. Pilar, welcome. How are you? Could you please tell us a little bit about yourself and about the organization that you represent?

Pilar Madrigal: Yes, absolutely, Steve. Thank you so much. It’s always a pleasure speaking with you and being part of your program. Honestly, your newsletter and podcasts always provide a lot of insight. So, it’s an honor to be here. I work for Cinde. Cinde is an organization that has now, actually, been around for 45 years. It’s going to be our 45th anniversary. We have been operating for 45 years and have been solely focused on attracting foreign direct investment. Out of those 45, I’m happy to say that I’ve been part of it for 28 years. So, I’ve had the opportunity to be part of a transition and an evolution of the country, seeing how the industries that we target started, how they were a few years ago, and where they’re going now. It’s been an honor, and it has allowed me to meet very, very interesting people such as you, and I’m very happy to be here.

LATAM FDI: Well, thank you for the compliment. I know you travel a lot, so you must see and learn a lot from the people you meet. I have half a dozen questions for you today. If you would like, we can start with the first one. In recent years, there’s been a lot of discussion about a slowdown in foreign direct investment. From CINDE’s perspective, what’s really happening here?

Pilar Madrigal: Well, clearly, global FDI is going through a much more complex cycle. It’s shaped by, as we all know, geopolitical movements, shifts in supply chains, tariffs, and, definitely, more cautious investment decisions by multinational companies. So, it’s been several years now that we’ve seen some sort of disruption from the pandemic all the way to what we’re living in today, right? There is much more geopolitical fragmentation. And so, companies are reassessing their expansion strategies. They’re looking at really reassessing topics such as risk, resilience, and proximity to the markets they want to reach. So as a result, I think investment decisions are taking longer, they’re more strategic, and the companies are evaluating locations that offer first and foremost stability, a country that can offer long-term competitiveness, that is, is really always looking as to what’s next as a, as a country. And obviously, that’s preparing talent for this. So, we’re not seeing simply a slowdown; we’re seeing a broader reconfiguration of where and how companies invest.

LATAM FDI: Would it be safe to say that we’re going through a period of structural change in how and where companies decide where to invest?

Pilar Madrigal: Well, I think that companies are increasingly prioritizing resilience, adaptability, and diversification when making this investment decision. So, in a, in a more uncertain global environment, firms are, are definitely looking to reduce the risk by diversifying operations, maybe not only in one country, but in, in, in a couple, and strengthening that regional supply chain. So, this has accelerated trends such as nearshoring. We’re very lucky to be in this part of the world, and we’re seeing how they’re regionalizing their operations. So, they seek locations that allow them to be closer, while still maintaining efficiencies. And so, I do, I do believe that there is a little bit of a shift and that, quite honestly, today we, for the purpose of nearshoring, are in a very, very good position.

LATAM FDI: When you look at global sector trends, what are the main opportunities that you see emerging today? How’s Costa Rica positioned to take advantage of what’s in the landscape at the moment?

Pilar Madrigal: Well, you know, Costa Rica has successfully positioned itself in the life sciences and medtech sector. We are the second-largest exporter of medical devices to the United States, and we also offer knowledge-based services such as shared services, digital technology centers, and advanced manufacturing, right? Anything that, that includes some sort of electronic expertise. And that’s largely due to the strength of our talent and to our growing integration into global value chains. So, we’re now not only seeing the OEMs, but also clearly the suppliers or their service providers, all creating an ecosystem that mirrors the ecosystems in the markets these companies are targeting. So, this trajectory has not only attracted investment but also enabled us to evolve toward higher-value activities within those same multinationals. So, for example, multinationals that started with simple assembly may now have R&D hubs, centers of excellence, and more, producing more sophisticated products. So, I do see that, globally, things are going to continue that way. Those sectors, healthcare, medtech, obviously advanced manufacturing, and anything that is knowledge-based, are what we will continue to see grow.

At least in Costa Rica. There are other sectors, of course; if you look at some studies, you’ll see that they’re also being targeted, such as data centers and related areas. In, in our case, we focused on this. Obviously, we always analyze other sectors, but as of today, this is our strategy, which has successfully positioned us in the three sectors I mentioned.

LATAM FDI: One thing that everybody’s talking about these days is artificial intelligence. How is AI changing operations for the global service centers that you have contact with, and what does that mean for Costa Rica?

Pilar Madrigal: You know, um, it’s a great, great question because we were talking about that today. Artificial intelligence is really not eliminating the services sector. It’s really rather transformative, you know, into much more complex and higher-value types of operations. As AI tools become integrated into everyday business processes, many routine, repetitive tasks that were automated have enabled those who were continually working on them to focus on more strategic, analytical, and decision-oriented activities. With these new types of functions, the biggest difference is that they all require context. As of today, we see AI tools as very good at creating and optimizing paths and strategies. But they need a context that only we, as humans, can provide. So, these people have really been experts in that process. And now they have been moved into a role where they provide the context for automating those processes. So, we do see the transformation. And we see a lot of innovation happening. It is, it is a, a different role, but we see, therefore, that these companies are becoming more and more sophisticated.

LATAM FDI: If operations that you see are becoming more digital and cognitive, what type of talent do the organizations need to find to be able to run their businesses, and how does that look in Costa Rica?

Pilar Madrigal: Well, yeah, you’re right. I mean, talent remains the central enabler of competitiveness in today’s global economy. That’s for sure. As operations become more digital, data-driven, and knowledge-intensive, companies are increasingly looking for professionals. What they’re looking for are professionals who combine strong digital skills with analytical skills, bilingual capabilities, and a high degree of adaptability. That’s very, very important. Beyond that technical expertise, they’re obviously really looking for value-driven problem-solving, a lot of collaboration, and the ability to learn quickly as the technologies they use evolve. So really, it is somebody, you know, who is looking for people that are very, very, I would say, who have the critical thinking, the problem solving, adaptability, and the ability to learn very quickly.

LATAM FDI: Well, in the midst of all these changes that you’re pointing out, um, great— like greater competition for investment, technology transformation, and that pressure on growing good talent. What is Costa Rica’s main opportunity to remain a relevant destination for FDI, and how important is it to update the country’s value proposition to ensure the model’s success in the medium term?

Pilar Madrigal: So, you know, I’m very glad to say that Costa Rica has important strengths. We do have a highly skilled talent pool. We have a longstanding political and institutional stability. We have a great proven track record in attracting foreign direct investment. And so, we do have that credibility, right, that we are a very good partner for a company to continue its growth process. Now, it is a pool of projects that’s becoming increasingly competitive, right? And so, believe it or not, I am of the thought that we all need to reevaluate our value proposition every couple of years. In our case, you know, this means continuing to strengthen our talent, obviously, developing more modern infrastructure, and working on public security and overall competitiveness, right? And in that way, for me, those, you know, and for us actually, those are the most important. Talent number one, obviously, is 1, 2, and 3: talent, infrastructure, public security, and competitiveness. And that’s what we are focusing on as a country, along with, you know, everybody who has developed the ecosystem. It’s very important that any country, especially Costa Rica, takes time to listen to these companies that have set up operations here.

We need to know where they’re going and how they’re changing, and that’s where our value proposition changes as well. So that’s what we’re doing. We listen closely to them. For CINDE, we’ve landed a little over 460 multinational companies. And we listen to them. We try to understand what they are—how they are doing well, but also what their pain points are —and we are continuously working, you know, in our investment climate to make sure it allows them to grow over the years.

LATAM FDI: I have one more question. You recently held a presidential election in Costa Rica, and a new president will take office soon. Could you tell us a little bit about that? Do you anticipate any policy changes that would affect FDI in Costa Rica?

Pilar Madrigal: Um, absolutely. We just had elections. The president-elect, Laura Fernandez, is from the current party. We don’t anticipate any significant changes. As a country, we have valued the continuity of good policies over the years. I do need to say CINDE is a private nonprofit organization. And we have always been open to working with the entire ecosystem, including the government, to collaboratively create and enable the right environment. So, we anticipate that forward-looking scenario or forward-looking vision, I would say. I don’t know if that’s the way you see it, continues. There is absolutely no indication that any of that is going to change, and that, you know, we all work collaboratively— collaboratively, oh my God, I couldn’t say the word.

LATAM FDI: That’s not an easy word.

Pilar Madrigal: To continue to make Costa Rica as strong as possible. So, uh, we’re very, very happy that we have elections, that everybody goes and votes. It is a wonderful party. It’s a great celebration in our country. You see families from different parties in the same car, all with their party flags. And it really is a celebration of a country that respects democracy and respects growth. So overall, absolutely, we anticipate that things will continue to grow and that we will remain a country that has been a friend and the right partner to almost 500 companies that have set up operations.

LATAM FDI: Hopefully, the podcast that we’re putting together at present is going to be something that will bring you more business. That being said, if somebody who is listening to this wants to talk with you about making a foreign direct investment in Costa Rica, how can they get in touch with you?

Well, I’d be very, very happy to talk to them. Clearly, my LinkedIn profile, my first name is Pilar, my last name is Madrigal, and my email address. I’ll be happy to send it to you, Steve, so you can put it in the transcript of this podcast. It’s pmadrigal@cinded.org. And I’m ready to talk. And, you know, one thing that I’ve learned through all these years is that this is a business of relationships. I’ve met, just to give you an example, about 3 years ago, I ended up being able to help a company set up operations after I had my first conversation with them 20 years before. So, we kept in touch for 20 years, and we would sit down, have coffee, and talk. It was never, you know, the right time. Things change, you know, executives changed. But the reality is that this is a relationship that you develop with the companies, with the intention of really letting them know whether you are the right partner for them and what they want to achieve. So happy to sit down with anybody, even if they don’t have a project or are just curious.

And of course, those that do have a project, I’ll be more than happy to, to have conversations. But I am always very open and very interested in hearing what companies have to say, where they’re going, and whether we can be of any help.

LATAM FDI: Well, thank you very much. I will provide listeners with your email address and a link to your  LinkedIn profile.

Pilar Madrigal: Thank you so much, Steve. It’s always a pleasure, and I hope you have a wonderful rest of the week.

LATAM FDI: Thank you, and the same to you.

The Venezuelan Mining Sector: A High-Risk, High-Reward Frontier for Global Investors

The Venezuelan Mining Sector: A High-Risk, High-Reward Frontier for Global Investors

by | Mar 28, 2026 | FDI Latin America

The Venezuelan mining sector is making a bold play to reposition itself on the global investment map.

For as long as the country has bet its economy on oil, policymakers in Caracas promoted the Venezuelan mining sector as the jewel in the nation’s economic crown. High-grade deposits of gold, diamonds, coltan, bauxite, and rare earth elements sat underground — tantalizingly within reach — but insufficient investment turned a sector with promise into one defined by extraction to meet domestic needs and finance for artisanal miners.

Venezuela’s mining sector is back on Washington’s radar.

Deepening economic crisis and collapsing oil exports are now forcing Venezuela’s leaders to confront that reality. Mounting pressure from U.S. sanctions — especially the loss of a key Chinese market for crude oil — has also reignited Venezuela’s pursuit of gold mining, specifically as a source of much-needed foreign currency. Add in geopolitical upheaval, gold’s relative safe-haven status, and a slew of key amendments to the country’s mining law that aim to incentivize foreign investment in Venezuela, and investors are starting to pay attention.

Gold: Drive of Venezuela’s Mining Comeback

Until recently, the Venezuelan mining sector remained in the shadow of its resource-nationalized cousin: petroleum. Yet gold is fast emerging as a key driver of renewed interest from investors.

A revised mining law is slated to open the sector to private investment.

Unlike other parts of Venezuela’s economy, where commodity price changes have caused seismic shifts, mining was able to operate with relative autonomy. One analyst describes mining as Venezuela’s “engine that didn’t stop.” The market has started to take notice, too: Last year, Venezuelan gold production grew by nearly one-third and in January reached its highest level in over a decade.

The legal landscape is evolving as policymakers look to restart the sector.

Although domestic production has ticked upwards, broader reform in the Venezuelan mining sector is needed to catalyze private investment. Venezuelan lawmakers this week reintroduced a revamped mining law aimed at doing just that. The latest proposal would:

  • extend concessions up to 30 years
  • formalize artisanal mining (largely unregulated in Venezuela until now)
  • require ministry promotion of foreign investment, provide for domestic arbitration
  • prioritize mediation in legal disputes.

Gone from the new draft is controversial language that would have allowed the President to issue mining concessions at will.

Growing geopolitical tensions, with far-reaching implications for global mining markets, are providing an additional tailwind.

One of the more interesting developments in the steady stream of recent news about the Venezuelan mining sector concerns Washington. Reuters reported last month that despite heavy sanctions against Venezuela, the United States has granted several licenses that allow U.S. companies to conduct transactions related to mining in the country. In December, U.S. government officials met with executives from Minerven, Venezuela’s state-run gold mining company.

Why Now? U.S.-China Competition and Venezuela

Discussions between Minerven and the U.S. government are just one example of how geopolitical competition with China is playing into Venezuela’s efforts to court foreign mining investors.

China buys roughly two-thirds of the world’s mined rare earth metals, and while Venezuela is hardly a competitor in that space, Chinese control of the rare earth value chain is raising alarms in Washington. As one former U.S. diplomat with knowledge of the conversations recently told Axios, Venezuela “is well aware of the strategic importance of rare earth minerals and the pivotal role they will play in future industries and technologies, especially electric vehicles.”

Increased U.S.-Venezuela dialogue fits within a broader pattern

Elsewhere in Latin America, the United States is making major investments to wean critical mineral supply chains from reliance on China. Secretary of Energy Jennifer Granholm toured Peru’s largest lithium deposit in November. Earlier this month, President Trump approved $4 billion for mining production in the United States, including processing facilities for rare earth elements. with Venezuela.

Venezuela’s Mines Offer Investors Potential and Risk

Slowly but surely, the pieces are lining up to attract foreign investment to Venezuela. But just because the possibility exists doesn’t mean investors should take the plunge.

For starters, significant risk remains. The ease of doing business in Venezuela is among the lowest in the world. Venezuela’s legal system is opaque at best, and expropriation remains a serious risk for commercial actors. U.S. companies looking to operate in mining (and anywhere else in Venezuela) should heed the lessons of Venezuela’s oil industry, where billions of dollars in sunk costs failed to stave off competitive disregard for private property and contracts.

However, risks notwithstanding, there are legitimate reasons to consider Venezuela.

Similar dynamics are at play in Iraq, Libya, and Syria, countries that also boast significant mineral reserves and are fertile ground for U.S. companies looking to diversify their supply chains. But Venezuela has advantages these countries don’t: a history of production and, increasingly, Washington’s attention. As the Trump administration continues to explore tools for reducing risk in Venezuela, Congress should weigh whether targeted allowances for the Venezuelan mining sector could help alleviate suffering without undermining prospects for a democratic transition.

Mercosur-European Union Agreement Approved by Paraguay

Mercosur-European Union Agreement Approved by Paraguay

by | Mar 20, 2026 | FDI Latin America

Paraguay recently approved the Mercosur-European Union Agreement. Paraguay becomes the last nation to approve the Mercosur-European Union Agreement. Uruguay, Argentina, and Brazil had already completed this process.

The delay was caused by the time it takes Paraguay’s parliament to approve treaties like this one and requests from some of Paraguay’s productive sectors.

The state continued that it would approve the accord, nonetheless.

Mercosur-European Union Agreement Approved by the Parliament of Paraguay

The agreement had already been approved by Mercosur countries like Uruguay, Argentina, and Brazil. With the Friday, March 13, 2026 announcement from Paraguay, all member countries have finalized the ratification process.

Trade ministers of the South American bloc and representatives of the European Commission concluded negotiations on the free trade agreement back in 2019. These negotiations took over two decades.

Paraguayan Chamber of Deputies President Rodrigo Gamarra stated:

“A market of over 400 million people will open up, with high purchasing power. We are talking about increasing export opportunities for Paraguay.”

Gamarra went on to say:

“The strengthening of integration will allow more investment to flow into Paraguay and the rest of Mercosur.”

Rodrigo Gamarra shared that people shouldn’t simply approve of the deal; they should celebrate it because it will bring Paraguay more market share, better pricing, and higher volumes of commerce. Gamarra says that once the agreement is fully ratified, the country will see:

  • More investment in Paraguay
  • Job creation
  • Better circulation of the Guarani within the country
  • Greater international competitiveness for Paraguayan goods.
  • Benefits of Mercosur-European Union Trade Deal, According to Parliament

Lawmakers who participated in the legislative session detailed several ways they believe the deal will benefit Paraguay. According to them, the agreement will:

  • Allow Paraguayan products to be sold overseas more easily.
  • Give Paraguay a new market to sell its products.
  • Improve the price competitiveness of Paraguayan goods.

Paraguay’s lawmakers also said that the deal will support micro, small, and medium-sized enterprises. Increase foreign direct investment in Paraguay.  Additionally, it will:

  • Reduce bureaucratic obstacles to trade between Paraguay and Europe.
  • Help integrate Paraguayan producers into global value chains.
  • Boost exports and production in key sectors of Paraguay’s economy

For Paraguay specifically, Gamarra noted that:

“This is a strategic tool that will allow us to increase our exports, boost our productive sector and attract foreign investment to the country.”

Why Is It Important for Paraguay?

Brazil, Argentina, Uruguay, and Paraguay benefit from the Mercosur trade deal with the European Union. However, Paraguay in particular will receive special perks from the agreement.

According to analysts, the markets that Paraguay exports to the most are Switzerland, Russia, and the United States.

Paraguay will have exclusive quotas with no tariffs for the following products:

  • Biofuels
  • Sugar that has been certified organic

Mercosur–European Union relations

EU–Mercosur relations date back to when diplomatic ties were first established between the then-European Economic Community and Argentina, Brazil, Uruguay, and Paraguay in 1980. Both sides agreed to establish a Framework Cooperation Agreement in June 1992, and it entered into force in March 1996.

Trade liberalisation talks between Mercosur and the EU began in May 1999. Political dialogue is regular at Political Dialogue Meetings (PDMS) and Summits between Mercosur and EU leaders. The EU and Mercosur leaders met for their first Summit ever in June 2022.

What Does This Mean for the Future?

The Mercosur-EU agreement will take decades to negotiate. It includes zero duties on almost 99% of goods traded between the two regions. When it goes into effect, it will provide one of the world’s biggest markets.

This free trade agreement between two economic powerhouses will cover more than 780 million citizens. This means more opportunities for the citizens of both regions.

The agreement covers a wide range of topics including:

  • Trade
  • Investments
  • Fight against illegal migration
  • Sustainable development.

How Will This Impact Foreign Trade and Investment?

Companies will have greater opportunities to sell abroad in both regions due to the agreement. Production will expand as a result of this, and more people will be hired.

Companies from Europe will also want to open up shop in Paraguay because of its access to the rest of Mercosur and South America. Simply put, more investment will come into the country.

This allows the transfer of technology from European companies to Paraguayan companies. If they choose to do business with them. The result of this will be:

  • Increased sustainable development
  • The elimination of illegal practices
  • Improved infrastructure and institutions

Increased Trade and Investment within Paraguay

More investment in Paraguay means more jobs for Paraguayans. When trade within a country increases, so does production.

When there is more production, companies need to hire more employees. Increased trade within a country also attracts foreign investment. Creating a cycle of growth and opportunity.

Government Reveals Four Reforms and Calls for Brazilian Investments in Bolivia

Government Reveals Four Reforms and Calls for Brazilian Investments in Bolivia

by | Mar 19, 2026 | FDI Latin America

In the scope of a government offensive to modernize the Bolivian economy and call for Brazilian investments in Bolivia, the latter country’s government announced four key reforms aimed at opening up the sector and invited private companies to participate in exploration and production activities.

Brazilian and Bolivian investors participated in the forum in São Paulo, where around 300 businessmen participated to discuss business opportunities.

The measures were unveiled by Bolivian President Rodrigo Paz at the forum. “We have begun a new era of openness, predictability, and pragmatism,” said Paz.

The reforms intend to make Bolivia a regional leader when it comes to competitiveness in order to attract international capital. The four reforms target Bolivia’s energy sector and lay the foundations for future private investment in mining and industry.

Paz called on Brazilian investments in Bolivia during his speech at the forum.

Four Key Reforms: Inviting the Private Sector

The reforms that form the pillars of the Bolivian government’s plan of “reactivating Bolivia” and invite the private sector participation are:

  • New Hydrocarbons Law
  • New Electricity Law
  • Green Energy Law
  • New Lithium Law

As reported by President Paz and Minister of Hydrocarbons Mauricio Medinaceli, Bolivia will overhaul its regulatory framework in the energy sector through these reforms.

Hydrocarbons Law

  • New contract scheme for hydrocarbons exploration and production.
  • New forms of association between private companies and YPFB.

Electricity Law

  • Align regulation in electricity generation, transmission, and distribution.
  • Integration with regional grids.

Green Energy Law

  • Development of green energy sources, including biofuel.
  • Bioethanol specifically calls on Brazilian know-how in ethanol production.
  • Hydrogen development and incentives.
  • Electric mobility.

Lithium Law

  • Opening of Bolivia’s lithium reserves for private companies.
  • Allocation of areas for exploration and production under new contracts.
  • Fast-track industrialization of the lithium value chain, including battery production.

Medinaceli commented on the reforms, saying that Bolivia is “changing the rules of the game by incorporating flexibility, efficiency, and incentives.”

Call Brazilian Investments in Bolivia

“Our country is open to anything that contributes to building a strong nation that produces and develops,” Paz said during the business forum while discussing Brazilian investments in Bolivia.

Brazilian companies could take advantage of Bolivia’s agribusiness potential by exporting Brazilian expertise in biofuel production.

Furthermore, the president reassured businessmen that Bolivia is “developing predictability and legal certainty” by providing incentives for production and clear rules that would allow fast-track authorization of projects and industries.

“We want Bolivia to be predictable for those who invest here,” said Paz.

Flexibility & Predictability

“Our foreign policy has no rigidity. We have met with President Trump as well as President Maduro,” Paz said while describing Bolivia’s foreign policy towards nations of different political ideologies.

“We are interested in what is convenient for Bolivia and what works. We are not interested in ideologies of the right or left,” he added.

Paz reiterated the government’s commitment to pragmatism and said that it will continue to pursue economic policies that deliver results while seeking out international capital.

“We want to continue improving the quality of life of our people,” Paz said.

Paz also reassured businessmen that regulatory changes would not be reversed by future administrations. Medinaceli also commented that Bolivia is aligning legislation with countries such as Canada and Australia in order to compete for capital in what he describes as a “competitive world cup.”

Brazil Cheers Bolivia’s Announcement

Brazilian authorities cheered Bolivia’s announcement and call for Brazilian investments in Bolivia.

“In agriculture, Brazil already has extensive experience that can help Bolivia expand production and also produce more for exports,” said Brazil’s Minister of Agriculture.

Jorge Viana, president of Brazil’s trade promotion agency, promoted ties between Santa Cruz and other states in Brazil, as Santa Cruz de la Sierra is Bolivia’s economic hub.

The main Brazilian companies showed interest in investing in Bolivia and expanding current operations. “Bolivia and Brazil can cooperate not just in energy but also in areas such as defense, agribusiness, and commercial aviation,” said an executive of a major Brazilian defense firm.

Brazilian oil company Petrobras will meet with Bolivian officials to “relaunch” the relationship between the two state-owned energy giants as Bolivia reforms its hydrocarbons sector.

“Brazil will contribute its vast experience in renewable energies,” Brazilian Vice President Hamilton Mourao said on Tuesday.

“We want to relaunch our relationship with an important firm, such as Petrobras, with clear rules of engagement,” Paz said.

Industry insiders have already responded well to Bolivia’s proposed hydrocarbons law, stating that the law will “level the playing field” and open up opportunities for investors interested in Bolivia’s vast hydrocarbon reserves.

Areas of cooperation between the two countries include greater energy integration, with Bolivia providing natural gas to power generation in Brazil, and modernizing its energy legal framework to allow Brazilian companies to participate in Bolivia’s promising energy sector.

“The new Hydrocarbons Law will certainly bring more predictability for private companies looking to develop Bolivia’s gas resources,” said Jorge Quiroga, former Bolivian president.

Brazilian investments in Bolivia could help exploit Bolivia’s natural gas potential. Brazil will continue to sell Bolivia’s natural gas as Bolivia invests in processing and petrochemical industries.

Quiroga also highlighted Bolivia’s complementary agricultural sectors; sharing Brazil’s experience in meat production could allow Bolivia to increase cattle stocks and boost exports.

The two nations also intend to boost supply chains in critical minerals, with Bolivia providing raw materials and Brazil providing refined products.

The current push for Brazilian investments in Bolivia highlights Bolivia’s push to diversify away from being China’s neighbor to South America’s neighbor.

 

Latin American Countries Have Semiconductor Opportunities: TSMC Announces Historic Investment In US Facilities

Latin American Countries Have Semiconductor Opportunities: TSMC Announces Historic Investment In US Facilities

by | Mar 18, 2026 | FDI Latin America

Taiwan Semiconductor Manufacturing Company, commonly known as TSMC, is a Taiwanese company known for its semiconductor manufacturing facilities. Yesterday, the company announced plans to invest $100 billion dollars into manufacturing facilities throughout the United States. This historic investment will have ripple effects throughout the semiconductor industry worldwide. Countries throughout Latin America will see both incredible opportunities and geopolitical pressure, says international relations expert René Bolio. Latin American semiconductor opportunities should be on the radar of investors and governments across Latin America.

René Bolio stated that the supply chain would begin shifting almost immediately. “Countries in Latin America that have abundant reserves of the minerals needed for semiconductor production are about to see a boom like no other,” Bolio stated. This will allow countries rich in resources to play a pivotal role in the future of digital technology and industrial production once again.

Latin American Countries Rich in Minerals:

Bolio went on to highlight countries like Chile, Argentina, and Bolivia as nations that could stand to gain the most from TSMC’s investment. Why? These countries sit on some of the largest reserves of lithium in the world. Lithium has been nicknamed “white gold” because it is used in the production of many of the batteries that go into the technology used to power smartphones, computers, and even electric vehicles.

  • Chile
  • Argentina
  • Bolivia

“This is a golden opportunity. A once-in-a-lifetime chance,” said Bolio. In order to prepare for the inevitable surge in demand, it will be critical for Latin American countries to expand their mining operations now. Additionally, smart governments will set regulatory policies that welcome foreign investments and form partnerships with American companies.

Speaking about the global trade tensions between the United States and China, Bolio had this to say:

The investment by TSMC comes as the United States and China are fighting over supremacy in the semiconductor industry. The tensions have expanded to include a trade war between China and the United States. As China and the United States continue to trade barbs, Latin America will be forced to pick a side as it does significant trade with both countries.

  • The United States wants to secure its supply chain and source more minerals
  • China wants to double down on investing in Latin America.
  • Latin America will be forced to choose who to side with.

Bolio warned that if tensions continue to rise between the United States and China, it could cause Latin American countries to suffer should they choose the wrong side. “Countries with booming mining operations could see that cut off based on geopolitical decisions,” he continued.

Applications of Semiconductors

The investment by TSMC will also help push digital transformation in Latin America. Semiconductors will be used to power several technology-reliant industries.

  • Fintech – As online banking and financial technology grow, there will be a demand for semiconductor technology.
  • Telecom – Devices used for 5G and other broadband technologies are powered by semiconductors.
  • E-learning – The expansion of online learning will require more devices that utilize semiconductor technology.

“This is great news for Latin America as a whole because it allows countries to improve productivity through technology and create their very own technology hubs,” Bolio explained. Countries like Mexico, Costa Rica, El Salvador, and Chile could all have the perfect opportunity to build out tech hubs.

Building A Latin American Tech Hub

If Latin American countries want to capitalize on TSMC’s investment and build out their technology hubs, they should focus on:

  • Providing the perfect ecosystem for R&D into advanced electronics
  • Forming relationships with Universities, Startups, and Non-Profits
  • Allows for knowledge sharing and creation of technical talent
  • Further develops their supply chain by producing more goods in-house

Semiconductor Opportunities in Latin America

Countries should focus on creating tech hubs that allow them to not just supply minerals to the rest of the world, but also develop the technology themselves. By investing in education and technology, Latin American countries can ensure they have the workforce needed to meet the demand of manufacturing at scale. Furthermore, Latin American countries can develop their own semiconductor opportunities.

Latin American governments should take the following steps to prepare for TSMC’s investment:

  • Draft clear regulations on mining. These governments should ensure they can quickly and efficiently mine lithium and other valuable minerals.
  • Welcome foreign investors – Providing tax breaks and other incentives for technology companies to operate within their borders.
  • Partner with the United States and other countries – Countries should solidify relationships with TSMC and any companies that work with or help supply TSMC.
  • Invest in education – Train the workforce you’ll need to meet the demand of manufacturing and production.
  • Invest in technological development – Whether through public or private ventures, countries should focus on developing their own semiconductor opportunities.

Bottom Line

This investment by TSMC represents something bigger than an investment. This represents an inflection point for the technology industry. An inflection point that countries in Latin America can capitalize on if they take the correct steps:

  • At the current moment, there is a high demand for lithium and other valuable minerals. Prices for these metals are high, and they will only continue to go up as China seeks to invest in Latin America.
  • Latin American countries can strengthen their ties with the United States while still trading with China.
  • Digital transformation throughout Latin America will pick up at a pace we haven’t seen before. Why won’t Latin America keep up?

“If foreign policy and resource management are done correctly, Latin American countries can enjoy higher exports, better relationships with the United States, and better technology for generations to come,” said Bolio.