Costa Rica is actively positioning itself to compete with Taiwan in semiconductor manufacturing, bolstered by recent partnerships with the United States and a focus on clean energy sources. The country’s National Semiconductor Roadmap highlights its commitment to becoming a new hub for chip production, capitalizing on Taiwan’s energy challenges to attract manufacturers seeking sustainability.
Costa Rica is seeking to compete with Taiwan in semiconductor production by strengthening partnerships, particularly with the United States. In 2023, Costa Rica introduced an 80-page National Semiconductor Roadmap to establish its “Silicon Jungle” and address global microchip supply chain vulnerabilities. U.S. Secretary of State Marco Rubio highlighted this partnership’s benefits during a summit with Costa Rican President Rodrigo Chaves Robles, emphasizing the importance of U.S.-trained technicians in enhancing supply chain security.
Historically known for its agricultural exports, Costa Rica shifted focus to technology after losing U.S. support in the 1990s. This pivot was accelerated by attracting Intel, which built its first assembly facility in the country, marking a significant transition to high-tech manufacturing. Despite a decline in production in 2014, Intel’s recent $1.2 billion investment revitalizes Costa Rica’s semiconductor industry.
This shift comes amid concerns over Taiwan’s semiconductor and energy stability, particularly due to growing tensions with China. Taiwan’s reliance on nuclear energy established it as a leading semiconductor hub, but the current government’s transition away from nuclear power has led to rising electricity costs. In contrast, Costa Rica’s renewable energy sources offer a stable environment for semiconductor production.
Taiwan Semiconductor Manufacturing Company (TSMC) reported rising energy costs and seeks to invest in renewable energy as part of its sustainability goals. Costa Rica’s energy mix, primarily from hydroelectric and geothermal sources, positions it favorably with lower, cleaner energy costs. The country’s commitment to sustainability appeals to tech companies focused on environmental responsibility.
Costa Rica is emerging as a potential competitor to Taiwan in the semiconductor industry, propelled by stable, renewable energy resources and strong U.S. partnerships. With cleaned power and a national strategy focusing on semiconductor production, Costa Rica can offer attractive incentives for chipmakers, contrasting sharply with Taiwan’s rising energy costs. The developments underscore the significance of renewables in the future of semiconductor manufacturing.
Original Source: www.motherjones.com
