Costa Rica deepens semiconductor ties with Taiwan despite 19-year diplomatic break

Despite severing diplomatic relations with Taiwan 19 years ago, Costa Rica is actively seeking collaboration within Taiwan's powerful semiconductor industry. The Central American nation is participating in SEMICON Taiwan for the second year running, signaling a strategic effort to engage with a global leader in chip manufacturing.

Following its debut at SEMICON Taiwan in 2025, where a trade delegation met with at least eight semiconductor companies, Costa Rica's PROCOMER (Foreign Trade Promoter Agency) is again present at the 2026 event. This continued engagement underscores Costa Rica's focus on leveraging Taiwan's expertise to foster its own semiconductor ambitions.

Costa Rica's government launched a roadmap in 2024 to enhance its semiconductor ecosystem, aiming to attract investment, create high-value jobs, and improve its standing in global supply chains. The country also benefits from U.S. cooperation through the CHIPS Act's international funds, seeking to capitalize on its proximity to the U.S. amid global supply chain restructuring and nearshoring trends.

However, Costa Rica's semiconductor aspirations face challenges. Reports indicate Intel is considering relocating some production lines from Costa Rica to Ho Chi Minh City, Vietnam, as part of its global manufacturing strategy. This potential move presents a significant hurdle for Costa Rica's goal of becoming a regional semiconductor hub, highlighting the competitive landscape and the importance of Taiwan's robust semiconductor cluster as a key partner.