In today’s rapidly evolving digital landscape, semiconductors play an indispensable role as the backbone of the global economy, powering essential devices ranging from vehicles to medical equipment and beyond. Recognizing the critical importance of these tiny yet mighty components, the United States and Costa Rica have embarked on a groundbreaking partnership. Driven by the International Technology Security and Innovation Fund (ITSI Fund), established through the CHIPS Act of 2022, this collaboration aims to cultivate a resilient, secure, and sustainable global semiconductor value chain. By diversifying and expanding the semiconductor ecosystem, this alliance seeks to foster economic growth, drive technological advancements, and secure a prosperous future for both nations and beyond.
United States of America and Costa Rica flags. (Image source: Microchip USA)
The United States and Costa Rica
Pioneering a Vision
The partnership between the United States and Costa Rica stems from a shared vision of progress and innovation. Recognizing the paramount importance of semiconductors in the digital transformation, both nations have committed to working together to bolster the semiconductor supply chain’s capabilities. This initiative paves the way for inclusive economic growth, job creation, and technological advancements while ensuring a secure and sustainable semiconductor value chain.
Moreover, this joint endeavor is not limited to bilateral benefits; it extends to the broader global semiconductor ecosystem. As technology continues to shape the future, ensuring a robust and reliable semiconductor supply chain is of utmost importance for industries and economies worldwide. By establishing best practices, fostering knowledge exchange, and promoting sustainable practices, the partnership sets an example for others to follow, strengthening the semiconductor industry’s resilience and security on a global scale.
CHIPS Act of 2022
A Catalyst for Global Change
In August 2022, President Biden signed the CHIPS Act, a landmark U.S. law that allocated billions of dollars in funding to strengthen domestic semiconductor manufacturing and research. At the heart of this transformative legislation lies the ITSI Fund, providing the U.S. Department of State with $500 million over five years. The ITSI Fund aims to facilitate the expansion of global semiconductor manufacturing, secure supply chains, and develop and deploy secure and trustworthy Information and Communications Technology (ICT) networks and services through alliances with allies and partners.
The establishment of the ITSI Fund underscores the United States’ commitment to nurturing international collaborations that foster innovation, security, and sustainability. By leveraging this financial support, the partnership between the United States and Costa Rica can embark on joint research and development initiatives, technological exchange programs, and capacity-building efforts. The ITSI Fund also opens doors to the creation of mutually beneficial ventures that not only strengthen both nations’ semiconductor industries but also enhance their contributions to the global technology ecosystem.
Costa Rica’s Strategic Positioning in the Semiconductor Ecosystem
Costa Rica’s role as a pivotal partner in the semiconductor value chain cannot be overlooked. The nation’s semiconductor industry development, regulatory framework, and workforce and infrastructure will undergo a comprehensive assessment to identify specific areas of growth and collaboration.
With its reputation as a trusted supplier and an ideal location for new operations in the semiconductor field, Costa Rica is poised to harness this partnership’s full potential. The nation’s commitment to fostering a skilled and adaptable workforce, coupled with its strategic geographic location, makes it an attractive hub for semiconductor manufacturing and research activities.
This collaboration offers an opportunity for Costa Rica to further enhance its capabilities and become a leading player in the global semiconductor industry, bringing lasting benefits to both economies and paving the way for sustainable and inclusive technological progress. The joint efforts of the United States and Costa Rica are set to drive the semiconductor industry forward, solidifying its position as a key player in the digital revolution and ensuring a resilient and prosperous future for both nations and the global technology ecosystem.
Leadership and Commitment
The collaborative spirit of this partnership is exemplified by Cynthia Telles, the U.S. Ambassador to Costa Rica, who underlines the significance of semiconductors across various industries. Both nations are dedicated to fostering an environment conducive to technological progress and economic prosperity. Rodrigo Chaves, the President of Costa Rica, expressed gratitude for the United States’ support and reaffirmed the country’s commitment to enhancing capabilities, particularly in infrastructure and talent.
Costa Rica’s pivotal role in the semiconductor value chain is unmistakable, as the partnership with the United States aims to assess its industry development, regulatory framework, and workforce to unlock potential areas of growth and collaboration. With a trusted reputation as a supplier and an advantageous location for semiconductor activities, Costa Rica is well-positioned to maximize the benefits of this collaboration.
U.S. Ambassador Cynthia Telles emphasizes the importance of semiconductors in various industries, while President Rodrigo Chaves expresses gratitude for the support and reaffirms their commitment to enhancing capabilities. Together, their collaborative spirit sets the stage for a successful alliance, fostering an environment for technological progress and economic prosperity, and paving the way for a resilient and thriving global semiconductor ecosystem.
The joint effort between the United States and Costa Rica to diversify and grow the global semiconductor ecosystem marks a momentous step toward a more secure and sustainable future. Through the ITSI Fund and the CHIPS Act of 2022, both nations have set their sights on a more prosperous and technologically advanced world. By nurturing this partnership, Costa Rica is poised to play a leading role in the semiconductor industry, and the global landscape stands to witness remarkable growth and resilience in the face of evolving technological demands. Together, they march towards a brighter, more interconnected future, solidifying their position as pioneers in the ever-expanding digital frontier.