Panama is one of the countries with which the United States announced in July 2023 a partnership to boost the semiconductor sector.
The Organization for Economic Cooperation and Development (OECD) analyses Panama’s potential for the semiconductor industry in order to give “recommendations and identify regulations and policies” for its development, the Panamanian government reported Monday.
Panama is one of the countries with which the United States announced in July 2023 a partnership to boost the semiconductor sector and thus promote a more resilient global chain.
The Ministry of Commerce and Industry of Panama (Mici) reported on Monday that a mission of OECD experts visited the country to gather information with a view to “issue recommendations and identifying regulations and policies conducive to the development of a semiconductor ecosystem, with special attention to assembly, testing and packaging activities.”
“The advancement of this industry in Panama will contribute to the generation of specialized jobs in areas such as design, engineering, manufacturing and management, impacting employment, local talent development and exports,” Mici added in a statement.
In announcing the association of the United States and Panama, it was specified that both countries would collaborate “tremenatically to carry out an in-depth evaluation of the existing semiconductor ecosystem” in the Central American country, “with the aim of identifying the strengths and areas of improvement.
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This review would be funded by the International Fund for Security and Technology Innovation or ITSI Fund, which was approved under the ‘ CHIPS Law of 2022‘Absowned by the U.S. State Department for the purpose of supporting and fostering collaboration with countries it has considered crucial for the semiconductor industry,’ according to official information.
The so-called ‘File 2022 CHIPS Act’ provided for $52.7 billion to subsidize production and strengthen supply chains.
“Panama’s incomparable logistical capabilities, the favorable business environment and remarkable political stability make it an exceptional option as a center for assemblaging, packaging and semiconductor testing,” Panamanian President Laurentino Cortizo said in the statement.
The United States considers the domestic manufacture of microprocessors a key issue for its economy and security, especially because of China’s great market dominance in this field.
This article has been translated from the original which first appeared in Panama America