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

Tennis Star Dimitrov and Actress Gonzalez Costa Rica Getaway

Bulgarian tennis star Grigor Dimitrov and Mexican actress Eiza Gonzalez shared a tender moment under a cascading waterfall in Costa Rica this week, capturing...

U.S. Shutdown Triggers Flight Cancellations and Long Airport Lines

Hundreds of flights were canceled in the United States on Friday, and passengers formed long lines at airports after the government ordered air traffic...

How Organized Crime Surged in Costa Rica

A new report paints a stark picture of organized crime tightening its hold on Costa Rica. The 2025 Global Organized Crime Index shows our...

How to Avoid Bad Coffee Shops While Traveling in Costa Rica

As we all probably know by now, Costa Rica produces some of the world's best coffee, with its high-altitude farms yielding beans known for...

How the U.S. Government Shutdown Disrupts Flights to Costa Rica

The U.S. Federal Aviation Administration has ordered airlines to reduce flights by 10 percent at 40 major airports starting tomorrow, as the ongoing government...

Costa Rica’s Route 32 Closed for Rock Removal Until Monday

Drivers heading to Limón face disruptions this weekend as Route 32 remains shut down for critical safety work. The Ministry of Public Works and...
spot_img
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica