Costa Rica plans to attract foreign direct investment in the semiconductor industry

Costa Rica’s Ministry of Foreign Trade has unveiled a distinctive plan to attract investment in the semiconductor sector. This plan sets the country apart as a premier destination for the industry, leveraging its strategic ties with the United States to become a pivotal partner in next-gen chip production. Costa Rica’s strategy is built on four key pillars, each designed to deliver significant short-, medium-, and long-term benefits.

First, it seeks to strengthen human talent and the semiconductor workforce. They will promote the education and training of professionals in this area, working closely with academia and companies to meet the demand for highly qualified personnel.

Secondly, the aim is to create an attractive investment environment, taking advantage of international incentives and developing local policies that encourage research and development in the field of chips.

The third pillar is dedicated to attracting Foreign Direct Investment (FDI), capitalizing on the surging global demand for semiconductors, and reshaping the global supply chain. The semiconductor industry saw global FDI inflows of US$52 billion in 2022, a staggering 22 percent annual increase. Costa Rica’s plan is to position itself as a strategic hub for semiconductor industry operations, particularly in the assembly, test, packaging, and design sectors, offering a promising return on investment.

Finally, the fourth pillar addresses regulatory improvement and investment facilitation, simplifying administrative procedures and creating a regulatory framework that promotes competitiveness and transparency in the sector. Among the measures to be taken are:

  • The acceleration of the registration of chemicals used by the semiconductor industry.
  • To Strengthen the applicable migratory regulatory framework and contribute to the entry and permanence of specialized human talent.
  • It is a deepening of the regulatory framework of property rights relevant to the industry.
  • Improvements in port management and operations.

Costa Rica boasts a strategic location, political stability, and robust logistical connections, making it an ideal destination for semiconductor investments. The industry’s track record is underscored by an Intel semiconductor assembly and test plant in the country and a network of over 600 local suppliers that can bolster the industry’s value chain. This ecosystem supports around 5,000 direct jobs in the country, demonstrating its commitment to the industry’s growth and sustainability.

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