No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeNewsCosta Rica’s Growing Role in the Global Semiconductor Supply Chain

Costa Rica’s Growing Role in the Global Semiconductor Supply Chain

In a recent publication, the U.S. Embassy in Costa Rica referred to Costa Rica as a “silicon rainforest.” The post explained what the semiconductor supply chain is and how the United States is making it more resilient by bringing it to the Western Hemisphere, highlighting Costa Rica’s role in this effort.

For the United States, Costa Rica has great potential in the semiconductor industry and has been a strategic ally in the region. Since the pandemic, the United States has sought to diversify its markets and establish semiconductor hubs that are geographically closer. “The economic shocks caused by the COVID-19 pandemic severely disrupted the global semiconductor supply chain,” the U.S. Embassy said. The pandemic and its consequences also brought to light the need to strengthen the supply chain and make it more resilient.

“A resilient supply chain is one that can adapt, recover, or reestablish itself easily when it faces economic hardships,” the Embassy highlighted. As a response to these challenges, the U.S. has increasingly looked to strategic partners like Costa Rica to bolster the supply chain. On July 14, 2023, the United States announced a new alliance with Costa Rica to diversify and secure the semiconductor supply chain, reflecting the strong bond of cooperation between the two countries.

Gina Raimondo, U.S. Secretary of Commerce, visited Costa Rica to formalize the partnership. “Costa Rica has great potential to contribute to the semiconductor industry, particularly in the area of assembly, testing, and packaging (ATP)—a critical part of the semiconductor production process,” she said.

As explained by U.S. officials, the production process of microchips involves three main phases: design, fabrication, and ATP. Over 70 countries are involved in this process. Costa Rica’s main focus would be on phase three. The United States leads the design phase, where the cost, power consumption, and capacity of the chip are determined. At the manufacturing stage, semiconductor production equipment is expensive and extremely difficult to create. It requires high precision, scale, speed, and reliability.

Raw and nanomaterials, such as silicon wafers, as well as certain chemicals, are essential for the process. The main suppliers of these wafers are located in Japan, Taiwan, Germany, and the Republic of Korea. East Asia produces 75% of the world’s semiconductors. The CHIPS Act, signed by President Biden, seeks to increase U.S. semiconductor manufacturing and diversify the U.S. supply chain.

During the ATP phase, each chip is cut, separated, tested, and assembled for integration into the final products. Costa Rica is already home to 13 companies from different parts of the world that are part of the semiconductor supply chain.

Trending Now

How does Trump’s blockade affect Venezuela’s oil?

A U.S. blockade on oil tankers entering or leaving Venezuela would likely trigger a steep drop in exports, with experts estimating reductions of up...

WTA Crowns Gauff-Zheng Rome Semifinal as 2025 Match of the Year

The WTA has named the grueling Rome semifinal between Coco Gauff and Qinwen Zheng as its 2025 Match of the Year, a fan-voted honor...

Staying on Costa Rica’s Best Beach: The awā Beachfront Hotel Experience in Punta Uva

Every traveler, no matter how many places they’ve visited, is always hoping to be surprised again — especially those returning to Costa Rica with...

US Forces Seize Second Oil Tanker Amid Tightened Blockade on Venezuela

United States forces intercepted a second oil tanker in international waters off Venezuela's coast on Saturday, escalating tensions in the Caribbean as President Donald...

Costa Rica Picnic Festival 2026 Lineup Headlined by Christina Aguilera, Maná and Nodal

Picnic Festival organizers revealed the lineup for the 2026 edition yesterday, setting the stage for two days of live music at Centro de Eventos...

Costa Rica Ranks Among Cheapest 2026 Flight Destinations from US

Travelers from the United States can expect lower airfares to Costa Rica next year, according to a recent forecast from Dollar Flight Club. The...
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica