Expansion of the global semiconductor ecosystem is a reality thanks to the alliance between the U.S. Government and Costa Rica

In August 2022, President Biden signed the 2022 CHIPS Act, a new U.S. law that allocated billions of dollars in additional funding to enhance domestic semiconductor manufacturing and boost research within the United States.

As part of these initiatives, the U.S. Department of State will collaborate with the Government of Costa Rica to diversify and expand the global semiconductor ecosystem.

The United States recognizes Costa Rica as a valuable partner in ensuring the semiconductor supply chain and initiating this partnership entails assessing Costa Rica's current semiconductor industry development. The findings of this assessment will guide future collaborative efforts aimed at bolstering this critical sector.

While specific steps with Costa Rica have not yet been defined, the primary goals of the funding provided by CHIPS Act seek to support the following endeavors:

• Ensuring critical material supplies.
• Strengthening international policy coordination.
• Expanding and diversifying production capacity in the Indo-Pacific region and the Americas.
• Safeguarding national and international security.

Costa Rica must fully seize this opportunity, as a confirmed investment destination, to drive the regional semiconductor agenda. This will enable the strengthening of existing businesses operating in the country and attract new investments, positioning the country as the prime choice to establish business ventures, thanks to its robust relationship with the United States government.

If your company operates in the semiconductor industry and is seeking business expansion opportunities in Costa Rica, please do not hesitate to contact us. At Dentons, we would be delighted to provide our legal expertise and experience to assist you throughout this process.