The government of the Dominican Republic is actively studying the possibility of establishing a new incentive framework for high-tech industries and transforming its free trade zones into advanced technological parks aimed at attracting cutting-edge manufacturing investments. This initiative follows an in-depth analysis of global best practices and the lessons learned from countries that have successfully nurtured their technology sectors. Víctor Bisonó (Ito), the Minister of Industry, Commerce, and SMEs, revealed this strategic move and is leading the charge to position the Dominican Republic as a major player in the global technology industries.
Strategic Focus on Semiconductor Manufacturing and Advanced Technology
Bisonó stated that this new framework is one of three strategic lines central to a broader, ambitious roadmap to attract investments in semiconductor manufacturing and other advanced technologies. The other two strategies focus on creating a robust public policy framework to enhance the country’s competitiveness and precisely target semiconductor investments. By doing so, the Dominican Republic aims to create a more diversified and resilient economy centered around technology industries and their transformative impact on various sectors.
Dominican Republic’s Unique Position in the Global Semiconductor Market
The minister emphasized that the Dominican Republic is uniquely positioned to meet the growing global demand for Advanced Technology Processes (ATP) operations that require “legacy” chips. These older-generation semiconductors are critical in several key industries, particularly in aerospace, defense, and industrial applications, where they continue to play an essential role despite being overtaken by newer chip technologies in other fields. This presents an opportunity for the Dominican Republic to capitalize on its strategic location and growing technological capabilities. He also highlighted that the country is already making itself a hub for this technology industry segment.
The National Semiconductor Industry Promotion Strategy (ENFIS)
The government has taken a significant step to support this initiative by formulating the National Semiconductor Industry Promotion Strategy (ENFIS). This initiative brought forward under Decree 324-24, made the semiconductor industry’s promotion, innovation, and development a national priority. The goal is to attract investments in semiconductor manufacturing and establish the Dominican Republic as a key global player in the technology industries, generating long-term economic growth and job creation. This forward-thinking approach seeks to leverage the country’s strengths and ensure that the technology industries in the Dominican Republic are prepared to meet future demands.
Minister’s Vision for Technological Growth in the Dominican Republic
“This will be an ambitious roadmap, designed in close collaboration with global stakeholders, which will significantly strengthen our industrial ecosystem and open a new chapter in the country’s technological development,” Bisonó explained during his speech at the monthly luncheon of the American Chamber of Commerce. He stressed that semiconductor manufacturing is the backbone of the economy of the future, underlining its central role in the growth of industries like electronics, automotive manufacturing, telecommunications, and renewable energy. The Dominican Republic is already positioned to become a key strategic partner for the United States in this domain, particularly in providing resilience to U.S. supply chains. This is especially important in light of semiconductors’ critical role in national security and the country’s future economic stability.
Joining International Initiatives to Enhance Technological Growth
The government’s commitment to this vision is also reflected in its readiness to join international initiatives such as the CHIPS Act, a U.S. federal program designed to incentivize semiconductor manufacturing in North America. “The draft of the ENFIS is already complete. We are ready to join initiatives such as the CHIPS Act, which ensures financing and opens up new opportunities for technology industries in the Dominican Republic,” Bisonó stated. He emphasized that the Dominican Republic’s strategic location and competitive cost structure make it ideal for global tech companies and U.S.-based firms looking to diversify their supply chains in a post-pandemic world.
Strengthening Ties with the United States
In his remarks, Bisonó further affirmed that the United States sees the Dominican Republic as its most prominent ally in the Caribbean and the broader region, strengthening the geopolitical and economic ties between the two nations. The Dominican Republic’s growing prominence in the global technology industries also aligns with broader U.S. objectives to secure and enhance its semiconductor manufacturing capabilities in the face of geopolitical uncertainties. In 2024, Dominican exports to the United States reached US$6.915 billion, reflecting a 7% year-on-year growth compared to 2023. This strong economic performance highlights the deepening trade relationship between the two countries. It underscores the Dominican Republic’s increasing role as a key player in global trade, particularly in sectors related to technology industries.
Focus on Innovation, Education, and Workforce Development
The government’s focus on fostering technology industries in the Dominican Republic is aligned with its broader economic vision. By capitalizing on the global demand for semiconductors, the country aims to attract foreign direct investment and build an ecosystem that nurtures local technology startups, educational institutions, and innovation centers. These efforts are intended to create a thriving technological ecosystem that can compete globally while providing high-skilled jobs and contributing to the country’s economic diversification. As more international companies recognize the potential of the Dominican Republic’s strategic initiatives, the country will continue strengthening its position as a technology hub in the Caribbean region.
Investment in Human Capital for Technological Advancement
Bisonó concluded his speech by emphasizing that the Dominican Republic’s investment in technology industries is about attracting and investing in human capital. “This initiative will pave the way for the development of specialized talent and the growth of a highly skilled workforce that will be at the forefront of future technological advancements,” he said. This is part of the government’s commitment to creating an environment where innovation can thrive and where the technology industries in the Dominican Republic can play a critical role in shaping the future of the global economy.