July 20, 2023
The National Government announced today that the United States has chosen our country as one of the few selected worldwide to establish a collaboration to reinforce the global value chain of semiconductors, commonly known as chips.
"Panama's unparalleled logistical capabilities, the favorable business environment, and the remarkable political stability make it an exceptional option as a center for assembly, packaging, and testing of semiconductors," said President Laurentino Cortizo Cohen. "The expansion of this industry in Panama has the potential to create well-paid jobs, particularly for young people, while improving the technological capabilities of our country's skilled labor," according to the President of the Republic.
He also explained that this is part of his administration's ongoing commitment to create opportunities for the next generation of Panamanians, particularly in the technological sector.
"The collaboration with the United States represents a crucial step to strengthen the resilience and competitiveness of this vital industry," the president said when announcing this important agreement.
As an initial measure within this newly formed partnership, the United States and Panama will work closely together to carry out an in-depth assessment of the existing semiconductor ecosystem in the country, to identify Panama's strengths and areas for improvement within the sector, providing valuable insights for future collaborations in the development of this critical industry.
The review will be financed by the International Technology Security and Innovation Fund ("ITSI Fund"). Approved under the 2022 CHIPS Act, the fund is managed by the US Department of State to support and promote collaboration with countries considered crucial for the semiconductor industry.
Panama recognizes the importance of semiconductor technology as a cornerstone of economic growth, national security, and technological innovation. It plays a key role in various industries, including telecommunications, automotive, health, and consumer electronics. With the rapid evolution of digital transformation and the growing dependence on advanced electronics, securing the semiconductor value chain has become a global imperative.
Recognizing the importance of workforce development in high-tech fields such as semiconductors, the Government of Panama has engaged in talks with Arizona State University, a leading institution in innovation and a renowned player in the semiconductor industry. Panama's goal is to create a cooperation platform with the university, to cultivate a Panamanian workforce that is trained and capable of seizing promising opportunities, such as those presented by the United States.