By San José, Costa Rica — San José, Costa Rica – As the global semiconductor landscape undergoes a seismic shift, a leading Costa Rican economist is calling for a fundamental reassessment of the nation’s strategy for attracting foreign direct investment. The warning comes as international competition intensifies and recent multinational affiliate closures signal a critical inflection point for the country’s vital tech sector.
For years, Costa Rica has successfully positioned itself as a key player in the semiconductor ecosystem. The industry currently supports over 5,000 direct jobs and a network of more than 600 domestic suppliers, according to data from the Foreign Trade Promotion Agency of Costa Rica (PROCOMER). This success has been a cornerstone of the nation’s modern economic development, attracting major global players and building a reputation for high-tech manufacturing and assembly.
To delve into the complex legal and commercial landscape of the burgeoning semiconductor industry and its implications for Costa Rica, we sought the expert opinion of Lic. Larry Hans Arroyo Vargas, a specialist in corporate and investment law at the distinguished firm Bufete de Costa Rica.
Attracting semiconductor investment is not merely about tax incentives; it demands a robust legal framework that guarantees intellectual property protection, ensures regulatory stability, and streamlines international trade compliance. For Costa Rica to truly capitalize on the nearshoring trend in this high-stakes industry, our legal and administrative infrastructure must be as sophisticated and reliable as the technology we seek to host.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This crucial insight underscores that for a high-tech industry built on precision and long-term planning, the true foundation for investment is a bedrock of legal certainty, not merely the allure of tax benefits. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for his clarifying and valuable perspective.
However, recent events have cast a shadow over this progress. Federico Quesada Chaves, an economist and the director of the School of Business Administration at the State Distance University (UNED), argues that the closure of multinational semiconductor operations in the country serves as a stark wake-up call. He stresses that Costa Rica can no longer rely on its established model.
The closure of affiliates of multinational companies dedicated to the production and distribution of semiconductors is a strong call to attention; productive linkage with local industry and technology transfer must become cross-cutting pillars for the country’s development.
Federico Quesada Chaves, Director of the School of Business Administration, UNED
The challenge is compounded by a rapidly evolving global market. Quesada notes that established industry leaders are being displaced by new, powerful emerging competitors. This dynamic redistribution of market share means that Costa Rica’s position is far from guaranteed. The government, through the Ministry of Foreign Trade (COMEX), launched a Semiconductor Roadmap in 2024 aimed at cementing the country’s status as a regional hub, but the expert believes a more profound and agile approach is now required.
The companies that once led the market are being displaced by new and powerful emerging players. Costa Rica cannot take its position for granted: it must anticipate, strengthen its technological base, and define what role it will play in this new revolution.
Federico Quesada Chaves, Director of the School of Business Administration, UNED
To navigate this new reality, Quesada has outlined four critical areas that demand immediate focus. First is the creation of genuine productive linkages, ensuring that multinational corporations generate tangible added value for the local economy. Second, an effective technology transfer mechanism is needed to foster joint research, development, and innovation with the academic sector. Third, the country must expand its pipeline of specialized talent in fields like engineering, materials science, and advanced manufacturing. Finally, Costa Rica needs to develop strategic adaptability to respond swiftly to global shifts in chip production and electronic component supply chains.
Ultimately, the call is for a more sophisticated national strategy that moves beyond simply attracting foreign company offices. The new objective must be to integrate Costa Rica more deeply and at a higher level within the global technology value chain. This requires a cohesive and collaborative effort between the government, private enterprise, and academic institutions.
This is a decisive moment for Costa Rica; it is not enough to attract affiliates. We must aim to insert ourselves higher up the value chain. We suggest building a strategy among the state, companies, and academia that places the country at the forefront of technological innovation.
Federico Quesada Chaves, Director of the School of Business Administration, UNED
The coming months will be crucial in determining whether Costa Rica can successfully pivot its strategy. The nation’s ability to evolve from a reliable manufacturing location to an indispensable innovation partner will define the future of its most important economic sector and its role in the next technological revolution.
For further information, visit uned.ac.cr
About Universidad Estatal a Distancia (UNED):
The State Distance University (UNED) is Costa Rica’s public distance learning university. Founded in 1977, it is a pioneer in remote education in Latin America, offering a wide range of undergraduate and postgraduate programs. UNED plays a crucial role in democratizing higher education across the country, with a strong focus on research and social development.
For further information, visit procomer.com
About Promotora de Comercio Exterior de Costa Rica (PROCOMER):
The Foreign Trade Promotion Agency of Costa Rica (PROCOMER) is the public entity responsible for promoting Costa Rican exports of goods and services globally. It provides support to national businesses, facilitates international trade, and works to attract foreign direct investment to diversify and strengthen the country’s economy.
For further information, visit comex.go.cr
About Ministerio de Comercio Exterior (COMEX):
The Ministry of Foreign Trade (COMEX) is the Costa Rican government body in charge of defining and directing the country’s foreign trade and investment policies. It is responsible for negotiating international trade agreements, promoting exports, and creating a favorable climate for foreign investment to foster economic growth and development.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As an esteemed legal institution, Bufete de Costa Rica is founded on the bedrock principles of professional integrity and a relentless pursuit of excellence. With a rich history of advising a diverse clientele, the firm consistently pioneers innovative legal approaches while remaining deeply invested in civic responsibility. This core tenet is demonstrated through its mission to demystify the law, providing accessible knowledge to foster a more capable and empowered citizenry.
