Costa Rica

Costa Rica

Launched a semiconductor roadmap to attract FDI

21 Mar 2024

On 21 March 2024, Costa Rica launched a strategic plan to establish the country as a hub in the regional semiconductor industry: "A roadmap for strengthening the semiconductor ecosystem in Costa Rica".

The plan includes four pillars aiming to attract FDI in the semiconductors industry:

  1. Talent development: This includes the introduction of new technical and university programmes tailored for the semiconductor industry, promoting bilingualism, attracting specialized talent in high-demand areas, and enhancing local research, development, and innovation capabilities in the sector.

  2. Modernizing incentives: The development of financial and fiscal incentives targeting research and development, aligned with new international fiscal standards (Base Erosion and Profit Shifting - BEPS), and strengthening existing incentives to boost competitiveness in attracting and retaining foreign direct investment. This includes incentives for promoting technology-based start-up companies.

  3. Attracting investment: Positioning Costa Rica as a strategic and attractive destination for the establishment of semiconductor industry operations including through general communication campaign and targeted prospecting campaigns using databases and automated tools to identify potential semiconductor companies for engagement. This involves identifying and contacting strategic semiconductor industry suppliers to establish operations in Costa Rica and developing tailored facilitation services to provide support to investors before and after establishment.

  4. Regulatory framework - Streamlining procedures and facilitating trade and investment: This involves streamlining chemical registration processes by simplifying procedures, reducing the time required for registration and promoting the digitalization of chemical product labeling. It also includes optimizing immigration processes for highly skilled workers as to reduce wait times and simplify procedures, strengthening the regulatory and institutional framework for intellectual property protection, and optimizing the country's trade flow by streamlining foreign trade procedures and modernizing port infrastructure.

Developed collaboratively with more than 20 governmental entities and key stakeholders, it seeks to position Costa Rica as a strategic investment destination within the semiconductor sector. The initiative includes the active participation of national agencies such as COMEX and PROCOMER, aiming to meet global industry demands. By capitalizing on its established industry presence, specialized talent pool, and extensive supplier network, Costa Rica aims to attract foreign direct investment and fortify the regional industry.

On the same day an Executive Decree was signed that declares semiconductor industry of public interest.

Nature of measure:
  • Facilitation
  • Promotion
  • Incentives
Type:
  • Promotion and facilitation (Investment facilitation , Investment incentives, Other)
Industry:
  • Manufacturing (Manufacture of computer, electronic and optical products, and electrical equipment)
Inward FDI:
No
Outward FDI:
No
Sources:

  • The Investment Policy Monitor provides the international investment community with up-to-date, country-specific information on recent policy developments affecting foreign direct investment (FDI).

    Through its ongoing monitoring of investment policy changes, UNCTAD delivers cutting-edge and forward-looking contributions to investment policy discourse. The Monitor also supports evidence-based policymaking aimed at ensuring that foreign investment contributes to sustainable development. The Monitor also informs the analysis of global and regional investment policy trends featured in the World Investment Report, the Investment Policy Monitor publications and the joint UNCTAD-OECD Reports on G20 Investment Measures.

    UNCTAD has tracked changes in national policies affecting FDI on an annual basis since 1992. Over time, the methodology has been revised to enhance the quality and consistency of reporting. The most recent revision, completed in 2024, further refined the monitoring framework and applied the updated classification to policy measures dating back to 2012.

  • UNCTAD Investment Policy Monitor

    The UNCTAD Investment Policy Monitor database compiles official measures affecting FDI adopted by United Nations Member States. These encompass measures explicitly targeting foreign investment (FDI-specific), as well as general investment measures that have a clear impact on such investment (FDI-related).

    The measures are either reported directly to UNCTAD by Member States through annual surveys or identified by UNCTAD researchers through publicly accessible sources (such as government websites and specialized policy databases).

    The classification of measures as more or less favourable to investors is based solely on their potential impact on investors. The type of measures included in each category are described below. This classification does not reflect any value judgement by UNCTAD on the merit or suitability of the measure.

    Classification of the nature of measures

    More favourable to investors

    Liberalization: includes privatization; lifting of entry restrictions (e.g. opening of sectors to FDI) and entry conditions (e.g. minimum capital requirement); removal (total or partial) of FDI screening or approval mechanisms; lifting of foreign exchange restrictions; liberalization of land access.

    Facilitation: includes streamlining of investment procedures (e.g. one-stop shops); greater transparency of investment-related laws and procedures (e.g. information portals); introduction by IPAs and other entities of new services to assist investors (e.g. linkages programmes, investor visa facilitation or alternative dispute resolution mechanisms).

    Promotion: includes establishment of IPAs or other institutions with a remit as investment promoters and expansion of their mandate; adoption of investment promotion strategy and plans; introduction of PPPs, auctions, and concessions initiatives or framework; introduction of OFDI promotion initiatives.

    Incentives: includes adoption of new tax and financial incentives schemes for investment; introduction of other incentives (e.g. citizenship by investment programmes); adoption of new SEZ-related incentives.

    Other regulatory changes: includes enhancement of investor treatment and protection guarantees; easing of labour or migration regulations concerning foreign hires and key personnel; removal of operational restrictions on investment (e.g. local content requirements).

    Less favourable to investors

    Entry: includes introduction or tightening of entry restrictions (e.g. total or partial ban on FDI in specific sectors); introduction or tightening of entry conditions (e.g. minimum investment threshold, joint venture requirements or State participation in strategic sectors); introduction or expansion of screening mechanisms for national security.

    Treatment and operation: includes introduction or expansion of foreign exchange restrictions; introduction or expansion of restrictions on foreign hires and key personnel; removal or reduction of investment incentives; introduction or expansion of post-establishment requirements for local content; reduction of guarantees for investment treatment and protection; introduction or expansion of restrictions on OFDI.

    Note: Measures are verified, to the fullest extent possible, by referencing government sources. The compilation of measures is not exhaustive.

    Disclaimer: the boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.

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