The Costa Rican Role in US Supply Chains: Medical Devices and Semiconductor Manufacturing

Costa Rica’s Role in Semiconductor Supply Chains

One key focus of the US strategy is the semiconductor industry, a cornerstone of modern technology. Fernández discussed the support provided through the CHIPS Act, which aims to re-shore a significant portion of the semiconductor industry from Asia. To achieve this goal, the U.S. is fostering cooperation with countries in Latin America, including Costa Rica. The Costa Rican role in US semiconductor supply chains is especially significant, given the country’s established expertise in advanced manufacturing and strategic geographic location.

The CHIPS Act allocates substantial funding to strengthen the semiconductor sector and reduce dependence on overseas production. In this context, the Costa Rican role in US supply chains emerges as a vital factor due to its ability to meet semiconductor companies’ needs and enhance regional manufacturing capabilities.

“We at the State Department, through our ITSI and TSI programs, have integrated Mexico, Costa Rica, Panama, and other countries in the region to bolster our supply chains,” Fernández explained. These initiatives aim to create a resilient supply chain network that benefits both the U.S. and its partners in Latin America.

U.S. Expansion Plans and Regional Benefits

Fernández highlighted that Latin America’s role in semiconductor production will be pivotal to the United States’ technological expansion plans. As the demand for advanced chips grows, neighboring countries are positioned to become indispensable allies.

“In the next decade, the United States expects to produce one-quarter of the world’s advanced semiconductors,” Fernández stated. “This is a field where Latin America will play an essential role.”

Costa Rica, Panama, the Dominican Republic, and Mexico are well-suited to support these efforts while reaping economic benefits. The collaboration extends beyond manufacturing to include support services, ensuring these nations are integrated into the global semiconductor supply chain. The Costa Rican role in U.S. supply chains is pivotal for ensuring this growing sector’s seamless operation and integration.

Costa Rica’s Leadership in Medical Device Manufacturing

In addition to semiconductors, Costa Rica is a leader in the production of medical devices, an area that has become a hallmark of its economy. Fernández praised the country’s growth in the healthcare sector, noting its contributions to regional supply chain integration.

“Costa Rica, the Dominican Republic, Panama, and Ecuador have been key partners in the Alliance for Development in Democracy,” Fernández remarked. “Together, we are working to strengthen supply chains, especially in medical equipment.”

Costa Rica’s advanced manufacturing capabilities and skilled workforce have made it a hub for producing high-quality medical devices. The Costa Rican role in US supply chains for medical devices ensures the continued delivery of innovative healthcare solutions. These products support global healthcare needs and drive economic growth and job creation within the country.

A Broader Vision for Economic Cooperation

The Biden administration’s recognition of Costa Rica underscores its broader vision for economic cooperation with Latin America. The US aims to build more resilient and diversified supply chains by fostering partnerships in semiconductors and medical devices. This strategy reduces reliance on distant regions, mitigates geopolitical risks, and promotes shared prosperity across the Americas.

The Road Ahead

As the Biden administration concludes its tenure, its engagement with Costa Rica is a testament to the country’s strategic importance. The partnerships forged under initiatives like the CHIPS Act and the Alliance for Development in Democracy reflect a commitment to mutual growth and innovation.

Costa Rica sees these collaborations as an opportunity to solidify its position as a regional leader in advanced manufacturing. By continuing to invest in its workforce, infrastructure, and technology, the country can further enhance its role in shaping the future of global supply chains.

This evolving partnership between the United States and Costa Rica is more than a diplomatic achievement—it is a blueprint for sustainable economic growth in the 21st century. The Costa Rican role in US supply chains will remain a key driver of this shared success.

Summary

The US State Department has emphasized Costa Rica’s role in U.S. supply chains, particularly semiconductor and medical device manufacturing. Under Secretary of State José W. Fernández highlighted Costa Rica’s advanced production capabilities, skilled workforce, and strategic location as pivotal assets for U.S. economic resilience and regional collaboration.

The United States aims to reduce its dependence on overseas semiconductor production through initiatives like the CHIPS Act. By fostering partnerships with Latin American nations, including Costa Rica, the US seeks to expand its global semiconductor market share while enhancing regional manufacturing capabilities. Costa Rica’s integration into this strategy underscores its importance in supporting advanced chip production and related support services.

Costa Rica also leads medical device manufacturing, contributing significantly to global healthcare supply chains. Fernández acknowledged Costa Rica’s growth in this sector as a driver of regional economic integration, citing its collaboration with Panama, the Dominican Republic, and Ecuador within the Alliance for Development in Democracy.

These partnerships align with the Biden administration’s broader vision of diversifying supply chains, reducing geopolitical risks, and promoting shared prosperity. For Costa Rica, these collaborations strengthen its position as a regional leader in advanced manufacturing and economic innovation.

The evolving US-Costa Rica partnership reflects a strategic alignment that benefits both countries, ensuring sustainable economic growth and robust supply chains in the 21st century. Costa Rica’s ongoing investments in technology and workforce development will further enhance its role in this critical collaboration.