U.S. Reaffirms Vote of Confidence in Semiconductor Production in Costa Rica

by | Feb 9, 2025 | FDI Latin America

National authorities took the messages as a positive sign, reinforcing Costa Rica’s role in the global semiconductor industry.

The Economy and Business section of the U.S. Department of State recently published a statement highlighting Costa Rica as a crucial partner in semiconductor production in Costa Rica. This announcement aligns with broader efforts to strengthen supply chains and reduce dependency on distant markets.

According to the statement, this strategic move is designed to bolster the resilience of supply networks and ensure stability in the technology sector.

“This helps prevent the possibility of future disruptions in the semiconductor supply chain, which affects many of our devices,” the department noted in a post on LinkedIn.

The Context Behind the U.S. Statement

The message comes amid Secretary of State Marco Rubio’s visit to Costa Rica. Although Rubio did not make specific public statements during his official engagements, the U.S. Department of State emphasized that his visit was an opportunity to evaluate the country’s progress in developing secure and efficient supply chains.

Rubio has been vocal about the need for the United States to relocate key industries to closer regions, ensuring economic security while fostering investment in allied nations. In a recent article published in The Wall Street Journal, he reiterated his interest in reducing reliance on geopolitical competitors by strengthening regional supply networks.

The U.S. Embassy in Costa Rica echoed this sentiment, confirming Washington’s strategic approach.

The embassy stated in an official communication, “The relocation of our critical supply chains to the Western Hemisphere would pave the way for economic growth in Costa Rica and other neighboring countries while safeguarding the economic security of the United States. “

“The U.S. Embassy in San José is committed to supporting this effort,” the statement added.

How Did Costa Rica Respond?

Costa Rica has long identified semiconductor production as a high-potential industry. Recognizing the sector’s strategic importance, the country has sought to establish itself as a reliable and competitive player in global semiconductor manufacturing.

Under President Joe Biden’s administration, the Semiconductor Roadmap was introduced, encouraging greater collaboration between Costa Rica and U.S. stakeholders. The initiative aims to replicate the country’s success in medical devices within the semiconductor industry. Furthermore, the CHIPS and Science Act designated Costa Rica as a secure location for semiconductor investments. This classification drew criticism from former President Donald Trump but was well-received by Costa Rican authorities.

With the United States transitioning to a new administration, Costa Rica remains attentive to any policy shifts that could impact its role in global semiconductor production. However, the recent U.S. statements reaffirming confidence in Costa Rica were seen as a strong endorsement of the country’s capabilities.

“Costa Rica is solidifying itself as a strategic ally and partner of the U.S. in the semiconductor supply chain,” stated Minister of Foreign Trade Manuel Tovar on social media.

“The recognition by Secretary of State Marco Rubio as a secure partner encourages us to continue strengthening our great alliance,” he emphasized.

Costa Rica’s Strategy for Semiconductor Production

Costa Rica has laid out an ambitious and comprehensive plan to position itself as a regional leader in semiconductor production in Costa Rica. The country is leveraging its strategic location, highly educated workforce, and strong international trade relationships to attract semiconductor investment.

Costa Rica is home to over a dozen semiconductor-related companies operating within free trade zones, which offer competitive tax and business incentives. This ecosystem has established a solid foundation for future expansion and development in the semiconductor sector.

One of the country’s top priorities is workforce training. Costa Rica invests heavily in education and technical training programs to meet the growing demand for skilled semiconductor specialists. The National Learning Institute (INA) and leading universities are at the forefront of this initiative. Recently, Costa Rica launched the first semiconductor certification program in Central America, marking a significant step in building a specialized talent pool for the industry.

Additionally, the government is focused on modernizing regulations and implementing new incentives to attract global semiconductor companies. These efforts include facilitating research and development (R&D) initiatives, streamlining administrative processes, and ensuring a business-friendly environment for international investors.

U.S. Backing Strengthens Costa Rica’s Semiconductor Goals

With the U.S. government reinforcing its support for semiconductor production in Costa Rica, the country has gained further credibility as a secure and stable destination for investment.

Costa Rica’s geographical proximity to the United States provides a key logistical advantage, particularly in light of global efforts to reduce reliance on Asian supply chains. The country also boasts decades of experience in high-tech manufacturing, notably with companies like Intel, which has played a pivotal role in developing Costa Rica’s semiconductor ecosystem.

Authorities are also working diligently to streamline regulatory processes, ensuring that companies looking to establish or expand semiconductor operations can do so easily. This includes reducing bureaucratic obstacles, enhancing intellectual property protections, and offering customized incentives to major industry players.

Strengthening International Alliances and Expansion Plans

Costa Rica has actively participated in international events such as SEMICON West, where government representatives and business leaders have engaged with global semiconductor industry stakeholders. These efforts aim to forge strategic partnerships, attract foreign direct investment, and integrate Costa Rica into the broader global semiconductor supply chain.

The country envisions itself as a semiconductor manufacturing hub and a center for related industries, including the automotive sector, life sciences, and medical technology. The government is fostering an ecosystem that supports semiconductor fabrication and the development of advanced technologies that rely on microchips.

Conclusion

The reaffirmation of U.S. confidence in semiconductor production in Costa Rica underscores the country’s growing role in the global supply chain. With strong U.S. backing, a well-trained workforce, and a business-friendly regulatory environment, Costa Rica is well-positioned to expand its semiconductor sector.

As the country continues to refine its strategy, Costa Rica’s leadership in the semiconductor industry will depend on sustained investment, ongoing collaboration with international partners, and the successful execution of its long-term development plans. By strengthening its capabilities and maintaining a commitment to innovation, Costa Rica is set to play a key role in the future of semiconductor production in the Western Hemisphere.