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Contact the Central American Group to explore the foreign investment option in Costa Rica and to establish nearshore manufacturing operations in the Green Park Free Zone.
The Government of Costa Rica recently reported that it seeks to position the country as an ideal destination for new US semiconductor industry foreign direct investment, which is why it is working on a strategy to provide the sector with a reliable and sustainable value chain.
As part of an official tour in Washington, the president of Costa Rica, Rodrigo Chaves, and the Minister of Foreign Trade, Manuel Tovar, met with representatives of the Semiconductor Industries Association (SIA), the Costa Rican Presidency reported.
“We are working on constructing a National Semiconductor Strategy through which our country and the industry are actively preparing to make Costa Rica a destination for US semiconductor industry foreign direct investment,” stated Tovar.
The minister added, “It is important to align our efforts to position the country as a reliable partner for its ecosystem and production, and we are committed to achieving a reliable and sustainable value chain so desired in this industry.”
Intel and others have made recent investments in Costa Rica
The SIA organizes industry actions in activities such as defining strategies to promote and maintain global leadership in technology for its members, including semiconductor manufacturers, suppliers, and research organizations. Its members include semiconductor companies like Intel, Texas Instruments, and Micron Technology.
Last August, the Intel company announced a 1.2 billion-dollar budget for the next two years of operations in Costa Rica, a country it considers key to the growing global demand for semiconductors.
As explained by the company, the investments will continue to update the infrastructure and technical and engineering skills to maintain the highest standards in developing next-generation products that will reach the market in the coming years.
Additionally, in July, the US Embassy in Costa Rica revealed that the US State Department would partner with the government to explore opportunities to diversify and grow the global semiconductor ecosystem and create a more transparent, secure, and sustainable global value chain and a positive environment for US semiconductor industry foreign direct investment.
The Chips and Science Act of 2022 has facilitated collaboration
This partnership is made possible by the International Technology Security and Innovation Fund (ITSI Fund), created by the CHIPS and Science Act of 2022.
“Today, we are here taking firm steps so that very soon, we will capture new investments and jobs for Costa Rica. “We are honored with the recognition that the United States gave to the country a few months ago when the US announced us as their first partners to benefit from the Chips and Science Law,” Minister Tovar said.
President Chaves is currently visiting Washington for the summit of leaders of the Alliance for Economic Prosperity in the Americas (APEP). As part of his agenda, he will also discuss cybersecurity, investment, trade, and migration issues. EFE
Costa Rica offers US semiconductor industry foreign direct investment many advantages
Costa Rica is a compelling destination for US semiconductor industry foreign direct investment due to a combination of strategic advantages and a business-friendly environment. The nation has emerged as a critical player in the global technology sector, and several factors make it an attractive location for semiconductor companies looking to expand their operations.
Firstly, Costa Rica boasts a stable political and economic environment. Its commitment to democracy and a history of political stability create a conducive atmosphere for long-term investments. The country has a well-established legal framework that protects intellectual property rights, providing a secure foundation for semiconductor firms to conduct research, development, and manufacturing activities without significant concerns about legal risks.
Secondly, Costa Rica has made substantial investments in education, producing a skilled and educated workforce that aligns with the semiconductor industry’s needs. The country’s emphasis on education has led to a high literacy rate and a robust pool of technical talent. Costa Rica’s workforce is proficient in English and offers a strong foundation in science, technology, engineering, and mathematics (STEM) fields, essential for the intricate demands of semiconductor manufacturing.
Moreover, the country has actively fostered a pro-business environment, implementing policies to attract foreign investment. Costa Rica’s free trade zones, in particular, offer tax incentives and streamlined bureaucratic processes, making it easier for semiconductor companies to set up and operate efficiently. The government’s commitment to reducing red tape and facilitating a smooth entry into the market enhances the overall attractiveness of Costa Rica as an investment destination.
Additionally, the nation’s strategic location is advantageous for the semiconductor industry. Positioned near the United States, Costa Rica offers convenient logistics for transporting semiconductor products. This proximity can lead to cost savings and efficient supply chain management, vital considerations for semiconductor companies seeking to optimize their global operations.
Furthermore, Costa Rica has prioritized sustainability and environmental stewardship, aligning with the growing global focus on corporate social responsibility. This commitment makes the country appealing for semiconductor companies aiming to integrate environmentally friendly practices into their operations.
Lastly, Costa Rica’s stability, skilled workforce, pro-business policies, strategic location, and commitment to sustainability collectively position it as a highly favorable destination for US semiconductor industry foreign direct investment. The country’s well-rounded advantages create an environment conducive to innovation, growth, and long-term success for semiconductor companies seeking to establish a significant presence in the region.
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