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Costa Rica's Expanding Role in Global Semiconductor Supply Chain

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Costa Rica’s Expanding Role in Global Semiconductor Supply Chain

by Geraldine S.
10/16/2024
in Automation & Robotics

Costa Rica is becoming a key player in the global semiconductor supply chain, referred to by the U.S. Embassy as a “silicon rainforest.” The U.S. has been working to strengthen its supply chain resilience by shifting more semiconductor production to the Western Hemisphere, with Costa Rica playing an increasingly important role. The COVID-19 pandemic exposed vulnerabilities in the semiconductor supply chain, prompting the U.S. to seek geographically closer and more reliable partners. Costa Rica’s contribution to the semiconductor industry, particularly in the assembly, testing, and packaging (ATP) phase, is viewed as critical to this effort.

On July 14, 2023, the U.S. formalized a new partnership with Costa Rica to help diversify and secure the semiconductor supply chain. U.S. Secretary of Commerce Gina Raimondo emphasized Costa Rica’s potential in ATP, a crucial part of the semiconductor production process. The global semiconductor production process involves design, fabrication, and ATP, with Costa Rica focusing on the latter phase. Thirteen companies in Costa Rica are already part of this supply chain, demonstrating the country’s growing importance in this industry.

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