International Technology Security and Innovation Fund Facilitates Partnership
In a significant move to bolster the global semiconductor industry, the State Department has announced a strategic partnership with the Government of Costa Rica.
The objective of this collaboration is to explore opportunities for diversification and growth while ensuring a more transparent, secure, and sustainable global semiconductor value chain.
The initiative is made possible through the International Technology Security and Innovation Fund (ITSI Fund), which was established under the CHIPS and Science Act of 2022.
United States and Costa Rica Unite to Address the Digital Transformation
Strengthening the Semiconductor Supply Chain
Recognizing the indispensable role of semiconductors in the digital transformation era, Cynthia Telles, U.S. Ambassador to Costa Rica, emphasized the importance of this partnership. Telles stated,
“The United States views Costa Rica as a partner in ensuring the semiconductor supply chain can keep pace with the digital transformation underway. Products ranging from vehicles to medical devices increasingly rely on semiconductors as the building blocks of today’s economy.
Our announcement of this collaboration underscores the significant potential to expand this industry in Costa Rica to the benefit of both our countries.”
The collaboration between the United States and Costa Rica will commence with a comprehensive assessment of Costa Rica’s current semiconductor industry development, regulatory framework, as well as workforce and infrastructure requirements.
The findings from this review will serve as the basis for future cooperation in advancing this critical sector.
Costa Rica’s Commitment and the Path to Inclusive Growth
Building a Resilient Semiconductor Industry
Costa Rican President Rodrigo Chaves expressed gratitude for the United States’ support and highlighted Costa Rica’s strengths in the semiconductor sector. He stated,
“We applaud the decision of the United States to support the Costa Rican semiconductor sector through the Chips and Science Act. It is a recognition of our leadership as a trusted supplier and our position as a great site for the development of new operations in this sector.
Costa Rica, under the coordination of the Ministry of Foreign Trade, will step up its efforts to enhance our capabilities to face the growing demands of the industry with better infrastructure and talent. The semiconductor supply chain represents a distinct opportunity for inclusive economic growth and job creation.
Costa Rica is open for businesses and to strengthen the private sector that invests in our country. Also, we believe that this is a manifestation of the strong relationship between the US and Costa Rica.”
In August 2022, President Biden signed into law the CHIPS and Science Act of 2022, which allocated billions of dollars to bolster domestic manufacturing and research of semiconductors in the United States.
The ITSI Fund and Costa Rica’s Growing Role
A Trustworthy Investment Destination
Manuel Tovar, Costa Rican Minister of Foreign Trade, expressed appreciation for the support extended by the United States and emphasized the significance of this partnership in advancing the regional chips agenda. Tovar stated,
“We welcome the support announced by the United States that strengthens Costa Rica’s position as a reliable investment destination for the advancement of the regional chips agenda. Over the years, Costa Rica has created a vibrant ecosystem for the chips sector.
The launch of our National Foreign Investment Attraction Strategy led by the foreign trade sector is an excellent platform to continue building our capabilities for more investment and supporting, as a trusted and resilient partner, the rebalancing of the semiconductor global industry.”
Under the CHIPS Act, the ITSI Fund was established, providing the U.S. Department of State with $500 million ($100 million per year over five years, starting in Fiscal Year 2023) to expand global semiconductor manufacturing, secure semiconductor supply chains, and develop secure and trustworthy Information and Communications Technology (ICT) networks and services through new programs and initiatives in collaboration with allies and partners.
Sources: THX News & US Embassy in Costa Rica.
