Opportunities in Panama’s Semiconductor industry

With geopolitical shifts pushing nearshoring strategies, Panama is positioning itself as a potential hub for semiconductor assembly, testing, and packaging (ATP).

In July 2023, The US Department of Commerce and the Panamanian government signed an agreement. Panama was chosen as one in seven countries (three in Latin America: Panama, Costa Rica and Mexico) where the USA will review the country’s current semiconductor ecosystem, regulatory framework, and workforce and infrastructure needs. The outcome of this review will determine if Panama is listed as a priority country for semiconductor development and could obtain guidance and potential funding from the United States as part of the $500 million International Technology Security and Innovation (ITSI) Fund.

To reach that objective, Panama has taken recent steps toward developing its semiconductor industry and it’s offering opportunities for international businesses, including those from the Netherlands. For Dutch companies, this could be an opportune moment to establish a foothold.