The element of the incentives it offers will be key to its competition against other countries in the competition to attract investments in semiconductors and that is where the Free Zones see a key role for the Costa Rican case.
“In all countries of the world there is very strong competition to attract this semiconductor industry and move it from Asia to the region of the Americas and to the region of Europe. So the countries of Europe and the Americas are giving a lot of incentives,” details the president of the Association of Free Zones (Azofras), Carlos Wong.
According to his reading, the benefits scheme will be essential, this compared to economic measures offered by other more developed countries with which it is more complex to compete.
“It will be very difficult for Costa Rica to compete with the incentives that Europe and the United States are offering, because they are capital incentives, very important financial incentives,” he says.
“So Costa Rica must focus on attracting the type of industries that can be integrated into those main elements of the semiconductor industry, that is why the sectors we choose are important sectors in which the platform of Free Zone incentives become very important for attract precisely that industry,” he adds.
Take advantage of the ability to adapt
Wong does not fail to highlight other points of strength and challenges that the country has to be a protagonist in the new semiconductor scenario. The first step is human resources. Although there is concern about training, the country’s response to challenges of this type is highlighted
“Costa Rica has an advantage of Costa Rican talent that has proven to be precisely with a great capacity to understand new processes; to integrate into technologically advanced processes,” he said. This advance will be key to generally overcoming the challenge of relocating an industry to the Americas where other continents had already covered ground.
“We are not a large country that does not have as a region the trajectory of Asia in terms of semiconductors and therefore it precisely implies a restart of a process that requires development not only of talent but also development of infrastructure and even the development of a specific strategy for attraction of investments,” he mentions.
Geography gives boost to semiconductors
From the Free Zones, the expectation is also due to the current geoeconomic context. On the one hand is the concept of ChipsAct. With this, the United States Government is providing cooperation so that “friendly” countries receive companies in closer territory. On the other hand, the expectation is “Friendshoring”, which combines political proximity to the United States with geographic proximity.
“Our most important advantage represents precisely being part of this new geoeconomic axis that has been developed around the Friendshoring concept through ChipsAct,” noted Wong.
With this combination of elements, the expected result is a much more leading role within the global industry. “It represents an opportunity for Costa Rica to not only bring more components into the semiconductor production chain but to insert ourselves in a more positive way precisely into that value chain,” he concluded.
