Narayan AmmachchiThe United States allocated US$30 million to support industrial growth in Latin America and the Caribbean, with a primary focus on semiconductor production.
This initiative was announced at the recent Americas Partnership for Economic Prosperity meeting in Washington, DC. It aims to bolster semiconductor assembly, testing, and packaging (ATP) capabilities, focusing initially in Mexico, Panama, and Costa Rica.
The Inter-American Development Bank (IDB) will facilitate the implementation of public-private partnerships and OECD guidelines to strengthen the semiconductor ecosystem.
This project is part of a broader effort by the US to counter China’s dominance in the semiconductor industry while fostering economic growth in the region.
The program, which will run through 2026, will kick off with the establishment of a technology lab in Costa Rica.
Brian Nichols, Assistant Secretary of State for Western Hemisphere Affairs, stated that the objective is to make the region “economically competitive.”
The US government is making a concerted effort to revitalize the region’s economic institutions and invest in its workforce and infrastructure. In addition to semiconductors, the US is also collaborating with Latin American countries to improve their capabilities in clean energy and medical supply production.
The US is Latin America’s largest trading partner, with trade totaling over US$1.1 trillion. It is also the largest source of foreign direct investment in the region. In 2023, Mexico surpassed China to become the top trading partner of the US.
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