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

Nighttime Closures Set for Costa Rica Highway This Weekend Amid Overpass Work

Drivers on Costa Rica's busy General Cañas Highway face temporary full closures over three nights starting this Friday as crews install beams for a...

Costa Rica Joins Forces in Bid to Host 2031 FIFA Women’s World Cup

Costa Rica has stepped into the global spotlight with a joint bid to co-host the 2031 FIFA Women’s World Cup alongside the United States,...

Costa Rica and US Seize 4.4 Tons of Cocaine in Pacific Operation

Costa Rican and U.S. authorities completed a joint maritime operation that led to the seizure of 4.4 tons of cocaine, dealing a substantial hit...

Messi’s Inter Miami will play its first MLS final against Müller’s Whitecaps

On a magical night in front of their fans, Lionel Messi’s Inter Miami thrashed New York City 5–1 on Saturday and advanced to the...

Viral Video Shows Chimpanzee Smoking at Chinese Zoo

A video showing a chimpanzee smoking a cigarette at a zoo in southern China has spread rapidly online, raising concerns about animal welfare and...

U.S. Embassy in Costa Rica Issues Security Alert Due To Rising Crime Threats

The U.S. Embassy here released a security alert, warning its citizens about a spike in crimes targeting foreigners across our country. Officials pointed to...
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