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

Costa Rica Faces a Proposed 12.5 Percent US Tariff

Costa Rica is among 60 economies that the United States has targeted for new tariffs tied to a federal investigation into forced labor in...

Costa Rica’s San Jose Airport Is Getting Its First Hotel

Costa Rica's San Jose airport is about to gain something no other airport in Central America has: a hotel guests can reach on foot...

Sarapiquí Flooding Keeps 330 in Shelters as a Yellow Alert Holds

Four days after floodwaters came through Sarapiquí in the dark, the water has not gone down. More than 330 people are still in shelters....

Route 27 Goes One-Way at 2 p.m. and the Weather Turns with It

If you spent the mid-year break at the beach, today is the day most people head home — and two things will shape your...

Costa Rica Faces Water Rationing and Wildfire Risk as El Niño Deepens

A strong El Niño has taken hold over Costa Rica and will keep much of the country drier and hotter than normal through the...

A Little-Known Tick Virus Turns Up in Costa Rica for the First Time

Costa Rican scientists have detected the Jingmen tick virus in the country for the first time, the earliest confirmed presence of the pathogen anywhere...

Costa Rica Orders Televisions Removed From Prison Cells

Costa Rica's Ministry of Justice and Peace has ordered the immediate removal of every television set from cells across the national prison system, the...

Giant Tarpon Rule the Río Colorado at Costa Rica’s Silver King Lodge

The first thing one learns about tarpon fishing at the mouth of the Río Colorado is that nothing comes easily. The Caribbean can be...

Costa Rica’s Public Health Waiting Lists Hit 1.4 million, Audit Finds

A newly surfaced internal audit at the Caja Costarricense de Seguro Social (CCSS) has intensified scrutiny of Costa Rica's public healthcare system, and it...
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel