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LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

May 3, 2024

Will Partnerships on Semiconductors Boost Economies?

U.S. Commerce Secretary Gina Raimondo met in March with Costa Rican President Rodrigo Chaves as part of U.S. efforts to strengthen the supply chain for semiconductors. // Photo: @SecRaimondo via X.

Q

  • U.S. Commerce Secretary Gina Raimondo met in March with Costa Rican President Rodrigo Chaves in San José to discuss efforts to boost the supply chain capacity of semiconductors in the Western Hemisphere. In addition to working more closely with Costa Rica on semiconductors, the U.S. State Department announced last year that the United States would also work with Panama to explore strengthening the supply chain for semiconductors. The State Department also announced in March that it would work with Mexico to “grow and diversify the global semiconductor ecosystem.” What is motivating closer U.S. partnerships with Latin American countries on semiconductors? How much could the efforts lessen Western dependence on Asia for the electronics components? How much benefit can these partnerships bring to Latin American economies?

A

Karim Lesina, executive vice president and chief external affairs officer at Millicom: “The United States’ push for closer collaboration with Latin American countries on semiconductors stems from a multi-pronged strategy between diversifying semiconductor supply chains, strengthening the Americas and capitalizing on Latin American strengths. Countries like Costa Rica possess skilled work forces and potentially valuable resources for chip production. However, maximizing success hinges on creating an environment conducive to nearshoring—shifting production closer to home. This is where the United States-Mexico-Canada Agreement (USMCA) comes in as it can facilitate nearshoring success by reducing trade barriers, promoting regulatory coherence and…”

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