Given supply chain diversification efforts, Costa Rica is emerging as a location of interest for some of the world’s largest semiconductor firms. This chapter overviews the structure and trends in the Costa Rican semiconductor ecosystem and then focuses on its integration into the global value chains. The availability of skills needed for the ecosystem is also discussed at length.
Promoting the Development of the Semiconductor Ecosystem in Costa Rica
Abstract
Costa Rica’s economy has shown stronger growth than the OECD average and regional peers over the past three years (OECD, 2025[1]). The latest OECD Economic Survey notes that Costa Rica’s GDP is expected to grow by 3.8% in 2025 and 3.8% in 2026 (OECD, 2025[1]), supported by strong exports, an improving domestic demand and a gradual improvement in the labour market (unemployment has fallen below pre-COVID-19 crisis levels). Investment is expected to increase by 7.0% and 6.7% in 2025 and 2026, respectively (OECD, 2025[1]).1
Over the last 30 years, the Costa Rican economy has been diversifying away from traditional productive activities, such as agriculture, towards medium- and high-technology (high-tech) industries and services (Monge-González, 2017[2]), including semiconductors. In this context, Costa Rica has received sizeable flows of foreign investment in recent decades, particularly from Intel, an important semiconductor integrated device manufacturer firm (OECD, 2019[3]).
Given supply chain diversification efforts, Costa Rica is emerging as a location of interest for some of the world’s largest semiconductor manufacturers. This section first describes the size and structure of the semiconductor market in Costa Rica, including an overview of the main firms (e.g. number of players and concentration) and economic activity (e.g. output, value-added) in the relevant semiconductor value chain segments, in comparison to other industries. The broader electronics sector is then analysed using macroeconomic data to show the recent trends and, finally, firm-level data are used to help understand the sector in detail.
The evolution of the semiconductor industry in Costa Rica has largely reflected the relative size and activity of Intel in the domestic semiconductor market. Diversification and the entry of new players into the semiconductor market could help enhance the domestic semiconductor industry’s sustainability, support local players’ development and boost innovation and productivity.
The computer, electronic and optical equipment sector (hereafter the electronics sector) in Costa Rica has experienced a decline in production since 2015. Most of the decline can be attributed to Intel’s disinvestment in 2014-15. Between 2020 and 2025, Intel re-established the assembly, testing and packaging (ATP) unit in Costa Rica and the sector’s added value reflected an upward trend during that period.2
Despite being more productive than other high-tech and medium-high-tech sectors, the electronics sector has shown a meagre growth in labour productivity over the past decade. Total value-added in the sector has only increased by 9% in 12 years, falling well behind the fivefold growth in the rapidly evolving medical devices industry.
The electronics sector in Costa Rica has become increasingly characterised by large firms. Their share in the number of firms grew from 24% in 2005 to 40% in 2022 with a significant decline of medium-sized and young firms. Between 2010 and 2022, the contribution of small- and medium-sized firms to employment and value-added declined from 19% to 3% and from 24% to 5%, respectively. The sector is also concentrated according to standard economic measures (e.g. Herfindahl-Hirschman Index) and geographically, with most firms located in the country’s Greater Metropolitan Area (Gran Area Metropolitana, GAM).
2.1.1. Key players in the Costa Rican semiconductor ecosystem
The history of the semiconductor ecosystem in Costa Rica dates back to 1954 when Grupo Capris was founded.3 However, it was not until the late 1990s, with the arrival of integrated device manufacturers Intel (Box 2.1) and Qorvo, that the industry experienced a significant surge, alongside considerable foreign direct investment (FDI) and the expansion of advanced technological manufacturing in the country. Since then, foreign firms have increased their participation in the Costa Rican semiconductor ecosystem, with some firms such as Teradyne (semiconductor testing equipment) and HPE (design and verification, research and development [R&D]) joining in the early 2000s and others such as Zollner (components and parts, printed circuit boards or PCBs) a decade later. Domestic players are the exception, and they include design firm Rydev. Table 2.1 lists the firms currently involved in the Costa Rican semiconductor ecosystem, alongside some of their characteristics.
As of 2022, firms directly involved in the semiconductor ecosystem employed approximately 5 000 workers. The majority of the 13 firms identified in Table 2.1 focus on the downstream manufacture of components and parts (including PCBs)4 and R&D (including design and verification), with four firms each. Notably, only two firms, Intel and Qorvo, engaged in the ATP segment of the semiconductor value chain until 2025 (refer to Annex A for further details on the semiconductor value chain segments).
Box 2.1 provides additional details about the development of Intel Costa Rica since its establishment in the late 1990s. The important presence of Intel’s ATP operation in Costa Rica has been one of several factors contributing to the development of the local semiconductor ecosystem. Intel’s activities have served as an anchor to attract suppliers and customers, strengthened collaboration with education and training institutions to help develop local talent, supported research through partnerships with higher education institutions, and contributed to the emergence of spinoffs among local product and service providers. Overall, this experience has helped develop the Costa Rican semiconductor ecosystem.
Notes: All firms have only one establishment. All firms included in this table are private: there are no publicly owned firms. The broader electronics sector is composed of other firms in the country, such as Bourns, an American electronics firm that provides electronics supplies to customers globally.
1. The location of the firm is “Multinational” if the firm also operates in a foreign economy.
2. The year when the firm started operating in Costa Rica.
3. This study was initiated in 2023 and subsequently reviewed in 2024 and 2025. While the landscape of the semiconductor ecosystem evolved during 2025, particularly with regards to firm-level business dynamics, the analysis and recommendations remain pertinent for Costa Rica and continue to offer guidance for policymaking.
4. In 2025, Qorvo and Intel announced the transfer of their ATP plants outside Costa Rica. Intel’s activities in the country will focus on design and validation.
Source: OECD based on tracking database fDi Markets (2024[4]), “Homepage”, https://www.fdimarkets.com/ and information from the Costa Rican Foreign Trade Promoter (Promotora de Comercio Exterior, PROCOMER) for this report.
In 2023, Intel announced a multi-year investment aimed at developing local talent and supporting semiconductor innovation, in addition to re-opening the ATP plant and expanding its facilities (Box 2.1). Other firms have also made additional investments in Costa Rica’s semiconductor ecosystem. These include for example past expansions of backend manufacturing capacities by firms such as Qorvo, investments by equipment manufacturers such as Briskheat and Teradyne, and continued activity of component and PCB manufacturers and semiconductor design firms, including the domestic start-up Rydev. Moreover, Costa Rica received additional investment in 2025, with equipment manufacturer Applied Materials establishing a services centre (PROCOMER, 2024[5]). These developments illustrate the varied and important contributions across the main segments of the semiconductor value chain in Costa Rica.
Intel Costa Rica, the local subsidiary of a multinational integrated semiconductor device manufacturer headquartered in the United States, is the largest semiconductor firm in Costa Rica. Intel operations in Heredia include an ATP line, as well as an R&D centre and a global services centre (GSC) that provide critical services and solutions for the entire corporation (Intel, 2023[6]). Intel invested USD 600 million in 2021 to re-activate its ATP line (Reuters, 2021[7]), making it the most important activity in its Costa Rican operation. As of 2022, more than 2 800 people and 5 600 contractors were employed in the 26 000‑square-foot plant and the 17 000-square-foot laboratories, both in the municipality of Heredia (COMEX, 2022[8]).
Following domestic policies designed to benefit from new value chains (see FDI section in Chapter 3), attract investment and promote non-traditional exports, Intel decided to open a microprocessor assembly and test plant in Costa Rica in 1997 (Monge-González, 2017[2]). Since beginning operations in 1998, Intel has been the largest player in Costa Rica’s semiconductor ecosystem, representing 60% of the country’s R&D exports and 0.61% of its GDP on average from 1998 to 2015 (Monge-González, 2017[2]). Intel’s contribution to Costa Rican GDP peaked at 0.9% in 2012. It represented 27% of total exports in 2014, just before deciding to move its assembly and testing (A&T) facilities to Asia, representing the layoff of 1 500 workers (Gereffi, Frederick and Bamber, 2019[9]). This decision was concurrent with the start of the country’s R&D and GSC operations.
Shared services soared from 10.4% to 56.2% of Intel Costa Rica’s sales. Even though R&D activities were added, their total production did not fill the void that the closure of the A&T operation left behind (Table 2.2).
Note: x: Not applicable.
Source: Monge-González, R. (2017[2]), Moving Up the Global Value Chain: The Case of Intel Costa Rica, https://researchrepository.ilo.org/esploro/outputs/report/Moving-up-the-global-value-chain/995218608102676; based on data from Intel Costa Rica.
Intel’s production activities in 2013 comprised: i) primary materials sourcing; ii) high-volume manufacturing; iii) high-volume testing; iv) final tests and packaging; and v) high-volume distribution, whereas the design and development were carried out mainly in testing processes (Monge-González, 2017[2]).
Following strategic decisions to relocate the ATP segment to Asia, Intel’s production activities moved its focus to: i) engineering unit testing; ii) packaging; and iii) low-volume distribution. Although ATP activities were moved out of the country, Intel launched the R&D activities in Costa Rica by 2016, comprising: i) design of intellectual property blocks; ii) software development; and iii) platform development.
In 2020, Intel Costa Rica reinstated its ATP activities and quickly recovered production capacity in response to recent uncertainties in the semiconductor market, including disruptions in the supply chain caused by the COVID-19 pandemic, geopolitical tensions and increasing calls for near-shoring of semiconductor manufacturing close to the United States manufacturing base.
In 2025, Intel announced the phase out of its ATP plant outside of Costa Rica. Intel will focus its operations on design and validation.
Sources: Intel (2023[6]), Intel in Costa Rica, https://www.intel.fr/content/www/fr/fr/corporate-responsibility/intel-in-costa-rica.html; Reuters (2021[7]), “Intel raises to $600 mln planned Costa Rica chip plant investment”, https://www.reuters.com/technology/intel-raises-600-mln-planned-costa-rica-chip-plant-investment-2021-07-21/; COMEX (2022[8]), “Intel inauguró oficialmente planta de ensamble y prueba en Costa Rica”, https://www.comex.go.cr/sala-de-prensa/comunicados/2022/agosto/cp-2776-intel-inaugur%C3%B3-oficialmente-planta-de-ensamble-y-prueba-en-costa-rica/; Monge-González, R. (2017[2]), Moving Up the Global Value Chain: The Case of Intel Costa Rica, https://researchrepository.ilo.org/esploro/outputs/report/Moving-up-the-global-value-chain/995218608102676; Gereffi, G., S. Frederick and P. Bamber (2019[9]), “Diverse paths of upgrading in high-tech manufacturing: Costa Rica in the electronics and medical devices global value chains”, https://doi.org/10.18356/86211a29-en.
Although the semiconductor industry in Costa Rica remains relatively small, the number of firms grew from 9 in 2012 to 13 in 2022 (Figure 2.1, Panel A). The semiconductor industry remains highly concentrated, notably compared to the rapidly expanding medical devices, machinery, equipment and chemicals industries (Figure 2.1, Panel B). Nevertheless, the semiconductor industry remains less concentrated than electrical equipment manufacturing.
High concentration suggests that the semiconductor industry’s overall performance may disproportionally reflect the performance of its leading firms rather than a broad-based performance across all players. Due to the significant concentration of the semiconductor industry and data confidentiality thresholds, this chapter analyses key measures in the electronics sector instead, namely International Standard Industrial Classification (ISIC) Division 26 (Manufacture of computer, electronic and optical products).5 The semiconductor economic activity falls within this division due to its integral role in producing electronic components and devices.
2.1.2. Evolution of the electronics sector – Insights from macroeconomic data
Technologically advanced sectors in Costa Rica have been increasing in importance in recent years. According to OECD National Accounts statistics (2024[10]), the joint contribution of the pharmaceutical and electronics sectors to total value added increased from 0.34% in 2018 to 1.21% in 2022.
Notes: Sectors are 2-digit ISIC divisions with notable exceptions: i) the semiconductor industry was identified using firms listed in Table 2.1; and ii) the medical devices manufacturing industry is ISIC group 325, “manufacture of medical and dental instruments and supplies”. Panel B shows the standardised Herfindahl-Hirschman Index (HHI) over sales by economic activity, where values above 0.3 indicate high concentration levels. The list of ISIC 2-digit divisions is available in Annex C.
Source: OECD calculations based on annual database REVEC data, provided for use in this report in accordance with confidentiality and privacy rules (accessed in January 2024). See Box 2.2 note for additional details.
More specifically, the electronics sector exhibited a remarkable trajectory of steady growth between 2000 and 2012, illustrated by the increase in gross output and value-added (Figure 2.2, Panel A). The evolution of the electronics sector in Costa Rica has largely reflected the relative size of Intel in the domestic semiconductor industry and its activity. For example, gross output and value-added sharply declined in 2015 after Intel moved its processor A&T operations to Asia in 2014. Gross output peaked at USD 794 million in 2012, then decreased to USD 130 million by 2015, before Intel’s A&T unit reopened in the same year. These trends suggest that diversification and the entry of new players into the semiconductor market could help enhance the sustainability of the domestic semiconductor industry.
Value-added of the electronics sector remained consistently high, around USD 400 million (in constant prices), with more than 1% of total value-added until 2013 (Figure 2.2, Panel B). Nonetheless, following Intel’s strategic decision to relocate their ATP activities (Box 2.1), the value-added plummeted to its lowest levels, around USD 60 million, maintaining this low plateau for 6 years. The reopening of Intel’s ATP operations in 2020 helped bring back the sector’s value-added to levels comparable to the previous peak of USD 462 million in 2022.
Figure 2.3 shows the evolution of FDI and gross new job creation in the electronics sector over the last 21 years (2003-2023), during which Costa Rica hosted 15 new semiconductor investment projects. The spike in 2020 illustrates the importance of Intel’s recent reinvestment in reopening the ATP unit in the country at the time.
Notes: In Panel A, the series was deflated using producer price index (PPI), manufacturing, total market (base year is 2015) (OECD, 2024[11]) . The deflator is the same as Panels A and B.
Sources: In Panel A, calculations are based on OECD (2024[12]), “Trade in value-added”, https://doi.org/10.1787/data-00648-en for the gross output series, and OECD (2024[10]), ”National Accounts Questionnaire from the Central Bank of Costa Rica”, http://data-explorer.oecd.org/ (accessed in August 2024) for the value added series, which extends until 2022. In Panel B, calculations based on OECD (2024[10]), “National Accounts Questionnaire” from the Central Bank of Costa Rica, http://data-explorer.oecd.org/ (accessed in August 2024).
Source: OECD calculations based on fDI (2024[4]), “the fDi Markets database”, https://www.fdimarkets.com/ (accessed in February 2026).
2.1.3. Evolution of the electronics sector – Insights from granular data on recent trends and heterogeneity of the sector
Firm-level data provide a better understanding of the market structure and dynamics in the sector and shed light on important differences in performance and firm characteristics that help policymakers design policy actions. This report builds on disaggregated data from the electronics sector in Costa Rica to analyse potential bottlenecks and help inform policies that would facilitate its development (Box 2.2).
Developing the evidence base through the analysis of firm-level and other types of highly disaggregated data is key to better understanding the semiconductor ecosystem and all other parts of the economy. These highly granular data are important inputs to the design of policies for monitoring changes in the dynamics of the sector and assessing the impact of policies affecting the sector. Costa Rica should continue investing in the underlying data infrastructure and analytical capabilities that inform policies, including for the semiconductor industry, while maintaining its strong commitment to preserving data privacy and confidentiality.
This report builds on disaggregated individual and firm-level data available at the Costa Rica Central Bank (Banco Central de Costa Rica, BCCR). The OECD worked closely with the BCCR to conduct analyses of disaggregated data without having access to the actual data, thus abiding by confidentiality and privacy rules. The approach used for the analyses means that the OECD prepared algorithms to analyse the data and sent them to the BCCR to process the analyses. The output is aggregated into main trends and key statistics used to support the policy analyses in this report.
The aggregated information is richer than typical statistics from national accounts or other aggregated sources, as they can provide better insights into the distribution of key variables (e.g. concentration, inequalities or differences in performance) as well as any underlying dynamics (e.g. entry and exit) not otherwise visible in pooled aggregate statistics. Disaggregated data used in this report are derived from:
The Registro de Variables Económicas (REVEC), a comprehensive annual database built on administrative data that allow to link size, performance and other relevant firm-level variables. In theory, this approach allows focusing on a granular sector, such as semiconductors. However, given the small number of firms active in Costa Rica and the sector’s concentration, this study had to consider the whole electronics sector and remove Intel from the dataset, given its contribution to concentration levels that were not compliant with statistical reserve laws.
Value added tax (VAT) data (Form D-151), an annual summary of clients, suppliers and specific expenses of firms and which corresponds to a tax information return that firms must file every year with the Ministry of Finance until the implementation of the electronic invoice. These data help to identify the local network of firms interacting with electronics sector firms, either as suppliers or recipient.
Customs data, including exports and imports data at the firm-product-partner country-year level. Please refer to Annex B for a narrower definition of semiconductor products. Customs data used in section 2.2 (integration in semiconductor value chains) were provided by and processed by COMEX, based on information by PROCOMER and BCCR, and compiled in accordance with the Balance of Payments Manual, Sixth Edition (BMP6). Semiconductor exports in Costa Rica are mostly recorded as processing services, i.e. goods under merchanting and manufacturing services on physical inputs owned by others (IMF, 2009[13]), thus mirror imports reported by partner economies may not match Costa Rica’s export statistics.
Linked employee-employer data, Costa Rican Social Security Fund data providing information on the workforce’s occupation and wages. The occupation is classified under the 2000 version of the four-digit Costa Rican Classification of Occupations (COCR).
These databases share common identifiers and can therefore be merged to combine information from different sources. This report provides statistics on a broadly defined electronics sector represented by ISIC Division 26 (Manufacture of computer, electronic and optical products). Only the analysis from the linked employee-employer data considers the semiconductor industry in particular.
Note: The OECD worked with the BCCR to obtain aggregate statistics and thanks Alonso Alfaro Ureña, Alberto Vindas and Luis Diego Durán for their dedicated and diligent job processing the data. The OECD did not have access to individual or firm-level Costa Rican data but shared computer code that was used for data analyses by BCCR staff. The BCCR shared aggregate results with the OECD, preserving data confidentiality requirements.
Business metrics: Employment, firm composition and value-added
Between 2010 and 2020, the electronics sector (excluding Intel)6 witnessed a gradual increase in employment, from 3 400 workers to 4 500 workers (Figure 2.4). This expansion, however, was less pronounced when compared to the surge observed in other sectors. For example, medical device employment almost quadrupled from 11 000 to 41 000 workers from 2010 to 2022. The medical cluster is a success story involving various firms, governmental actors and academia as part of a formal cluster (Figure 2.4). This collaboration helped spur innovation and competitiveness and created more employment opportunities and added value.7
Notes: The value for the medical devices industry in 2020 is not shown due to high levels of concentration. To comply with Costa Rican statistical data anonymisation laws, Intel was removed from the selection of electronics firms. As a result, these figures reflect the structure of the broader electronics sector (ISIC 26) rather than the semiconductor industry alone.
Source: OECD calculations based on REVEC data, provided for use in this report in accordance with confidentiality and privacy rules (accessed in January 2024). See Box 2.2 for additional details.
Total value-added in the electronics sector remained quite stable over the last 13 years.8 Value-added went from CRC 40.8 billion in 2010 to CRC 44.5 billion in 2022 (in constant 2010 prices) (Figure 2.5), whereas sales increased by more than 40% from CRC 117.7 billion in 2015 to CRC 167.3 billion in 2022. The meagre value-added growth could point to challenges faced by firms in terms of innovation and competitiveness.
The contribution of the electronics sector to value-added growth has been lagging well behind that of medical devices. In 2010, the medical devices industry in Costa Rica contributed a value-added of CRC 272.5 billion (compared to CRC 40.8 billion for electronics) and, by 2022, this contribution was 5 times larger, while the electronics sector showed a modest growth of 9% over the same 12-year period. Value-added growth in the electronics sector has been slower than in the high-tech manufacturing sector (see Annex C for the technological intensity classification). The latter has experienced sustained growth driven primarily by export-oriented activities, such as medical devices. The medical devices industry has been increasingly important in the Costa Rican economy and surpassed agricultural products as the country’s most exported goods in 2017, totalling USD 3 billion in exports and accounting for 27% of Costa Rica’s exports (The Central American Group, 2024[14]).
Notes: The series was deflated using: PPI Manufacturing, total market, from OECD.Stat (OECD, 2024[11]). The value for the medical devices industry in 2020 is not shown due to high levels of concentration. Note that the value-added series in this figure is not directly comparable to Figure 2.2 due to the removal of Intel from the selection of electronics firms, given that the high concentration levels are non-compliant with statistical reserve protocols in Costa Rica.
Source: OECD calculations based on REVEC data, provided for use in this report in accordance with confidentiality and privacy rules (accessed in January 2024). See Box 2.2 for additional details.
Firm composition: Size and age
Costa Rica’s electronics sector is concentrated, with a few large firms holding a significant market share. The sector features a mix of both large and small firms: in 2022, 10% of firms had fewer than 3 employees, while another 10% employed over 550 workers. Overall, the average firm size in the electronics sector increased from 2012 to 2017 but then declined between 2017 and 2022. In contrast, the medical devices industry has substantially grown the average firm size over the past decade (Figure 2.6). This employment growth in medical devices occurs across firms of various sizes rather than being limited to a few large firms compared to the electronics sector.
The electronics sector has increasingly become concentrated among large firms over time. There was a fairly even distribution of firms across micro, small, medium and large segments in 2005 (Figure 2.7, Panel A). Nonetheless, the number of non-large firms began to decline after 2014, with medium-sized firms particularly affected, while the number of large firms remained stable. The reduction in the number of micro, small and medium-sized firms and the increase in the share of large firms (excluding Intel) coincides with Intel’s decision to relocate its ATP operation (Box 2.1).9
The current size composition in the electronics sector reveals a stable number of nine large firms since 2018 (Figure 2.7, Panel A), whereas the number of medium-sized firms decreased from six in 2005 to one in 2022. Meanwhile, the number of micro and small firms fluctuated throughout the period analysed but outnumbered medium-sized firms in 2022. In 2022, Costa Rica’s electronics sector included six micro, six small, one medium-sized and nine large firms.10 The decrease in non-large firms could lead to reduced market diversity and innovation, ultimately weakening the semiconductor ecosystem. The age distribution of firms shows few young firms in Costa Rica’s electronics sector. In 2011, mature firms outnumbered young firms by nearly four to one, widening this gap over time (Figure 2.7, Panel B).
Note: The background represents the firm size classification according to the Chamber of Industry of Costa Rica (micro: 1-5 workers, small: 6‑30, medium: 31-100; large firms: 101 or more). Intel was removed from the selection of electronics firms to comply with Costa Rican statistical data anonymisation laws. Data reflect the structure of the broader electronics sector (ISIC 26) rather than the semiconductor industry alone.
Source: OECD calculations based on REVEC data, provided for use in this report in accordance with confidentiality and privacy rules (accessed in January 2024). See Box 2.2 for additional details.
The concentration of activity among large firms in the electronics sector is even more evident in value-added and employment. Over the past decade, non-large firms’ employment share fell from 19% to just 3%, while their contribution to value-added dropped from 24% to 5% (Figure 2.8). This stark decline highlights the diminishing role of micro, small and medium-sized firms in driving economic growth and job creation. Policies aimed at revitalising and supporting smaller firms could be critical to restoring their contributions to the sector and promoting the development of a semiconductor cluster.
Note: Panel A shows the number of firms by size (micro: 1-5 workers, small: 6-30, medium: 31-100; large firms: 101 or more, as defined by the Chamber of Industry of Costa Rica. Panel B shows the number of firms by age (young firms: 1-5 years and mature firms: 6 or more years); not all firms can provide the age variable information, hence the difference in the number of depicted firms and years between Panels A and B. Intel was removed from the selection of electronics firms to comply with Costa Rican statistical data anonymisation laws. Data reflect the structure of the broader electronics sector (ISIC 26) rather than the semiconductor industry alone.
Source: OECD calculations based on REVEC data, provided for use in this report in accordance with confidentiality and privacy rules (accessed in January 2024). See Box 2.2 for additional details.
Note: Panel A shows the workforce composition between 2010 and 2022 by firm size classification (micro, small and medium firms: 1‑100 workers; large firms: 101 or more). Panel B represents the value-added composition by firm size classification in the same period. Intel was removed from the selection of electronics firms to comply with Costa Rican statistical data anonymisation laws. Data reflect the structure of the broader electronics sector (ISIC 26) rather than the semiconductor industry alone.
Source: OECD calculations based on REVEC data, confidential data (accessed in January 2024). See Box 2.2 for additional details.
Firm composition: Free trade zone and foreign firms
Analysing firm dynamics inside and outside the FTZ helps clarify how current incentives shape the electronics sector and where additional policy tools may be needed to support the growth of domestic firms. The free trade zone (FTZ) regime provides important incentives for firms that invest in alignment with Costa Rica’s strategic priorities. However, the regime is not limited to semiconductor firms and any firm involved in activities categorised as trading companies, manufacturing or services in strategic sectors, or park administrators can benefit from the regime (see Chapter 3 for more details). It is, therefore, not surprising that most firms in the electronics sector operate under the FTZ regime.
Since 2005, there has been a noticeable shift in the distribution of electronics firms, with a decrease in the number of firms not benefitting from the FTZ regime (Figure 2.9). In 2005, over 62% of electronics firms were outside the FTZ, a share that dropped to 45% in 2022 (Figure 2.9). Conversely, the number of firms within the FTZ remained stable and increased their share in the total sector. Moreover, the overall reduction in the number of firms in the Costa Rican electronics sector observed between 2014 and 2021 was mostly driven by a reduction in non-FTZ firms. This trend illustrates the importance of the incentives provided by the FTZ regime and suggests that they are key factors in firm survival.
The electronics sector is characterised by a considerable share of foreign firms, with this segment accounting for half of the firms in the sector (Figure 2.9) in 2022. The share of foreign firms in the electronics sector remained stable between 2005 and 2018 at around 60% until 2022, when domestic and foreign firms were split evenly. The electronics sector has seen 13 new firms entering the market between 2005 and 2022, while 20 firms have exited during the same period (Figure 2.10). Net firm entry in the market has been negative for most of the years in the analysis period (eight) compared to just a few years of positive net entry (four). The number of entrants and exiters was relatively balanced until 2014, when the number of exiters started to increase, coinciding with Intel’s decision to relocate its ATP operation (Box 2.1). Since 2021, three new firms joined the market, which has lowered the average age of firms in the sector.
Note: Intel was removed from the selection of electronics firms to comply with Costa Rican statistical data anonymisation laws. Data reflect the structure of the broader electronics sector (ISIC 26) rather than the semiconductor industry alone.
Source: OECD calculations based on REVEC data, provided for use in this report in accordance with confidentiality and privacy rules (accessed in January 2024). See Box 2.2 for additional details.
Labour productivity
Labour productivity trends provide insights into the competitiveness of Costa Rica’s electronics sector and its potential to move into higher‑value activities. In line with the evolution of value-added, the electronics sector in Costa Rica exhibited modest labour productivity growth over the past 12 years. From 2010 to 2022, median labour productivity increased from CRC 8.2 million to CRC 9.1 million per worker (Figure 2.11, Panel A), representing an increase of 11%. Figure 2.11 suggests that productivity is driven mostly by top performers, with the average being consistently over the median labour productivity.
Note: The diamond markers represent the net entry, the difference between the number of firms entering the market and those exiting. Intel was removed from the selection of electronics firms to comply with Costa Rican statistical data anonymisation laws. Data reflect the structure of the broader electronics sector (ISIC 26) rather than the semiconductor industry alone.
Source: OECD calculations based on REVEC data, provided for use in this report in accordance with confidentiality and privacy rules (accessed in January 2024). See Box 2.2 for additional details.
Note: Panel A shows the distribution of labour productivity (real value-added/number of workers) in the electronics sector according to productivity percentiles 25th, 50th (median) and 75th and the weighted mean (by the number of workers in each firm). The lines represent the evolution of each group from 2010 to 2022. The series was deflated using PPI Manufacturing, total market from OECD (2024[11]). Data for 2020 were not available for the medical devices industry due to high concentration levels. Intel was removed from the selection of electronics firms to comply with Costa Rican statistical data anonymisation laws. Data reflect the structure of the broader electronics sector (ISIC 26) rather than the semiconductor industry alone.
Source: OECD calculations based on REVEC data, provided for use in this report in accordance with confidentiality and privacy rules (accessed in January 2024). See Box 2.2 for additional details.
In comparative terms, labour productivity in the electronics sector is higher than in other high- and medium-high-tech sectors in Costa Rica, including medical devices, pharmaceutical products and other machinery and equipment manufacturing (Figure 2.12). The relatively high value-added contribution per worker provides a good case for enhancing support aimed at improving productivity and competitiveness in the electronics sector.11
Note: The figure shows the evolution of median labour productivity (percentile 50) in selected high- and medium-tech manufacturing sectors. The series was deflated using PPI Manufacturing, total market, 2015=100 from OECD (2024[11]). In 2020, data for the medical devices industry were not available due to high concentration levels. Intel was removed from the selection of electronics firms to comply with Costa Rican statistical data anonymisation laws. Data reflect the structure of the broader electronics sector (ISIC 26) rather than the semiconductor industry alone.
Source: OECD calculations based on REVEC data, provided for use in this report in accordance with confidentiality and privacy rules (accessed in January 2024). See Box 2.2 for additional details.
Geographic distribution
Firms are predominantly based in the main metropolitan area. Figure 2.13 shows the evolution of the geographic distribution of firms in the Costa Rican electronics sector between 2005 and 2022. In 2005, electronics sector firms were located mostly in San José province, the centre of the GAM.12 Over the years, the electronics sector shifted towards other cantons and provinces such as Alajuela and Cartago. This process has not reached provinces outside of the GAM area.
Note: Intel was removed from the selection of electronics firms to comply with Costa Rican statistical data anonymisation laws. Data reflect the structure of the broader electronics sector (ISIC 26) rather than the semiconductor industry alone.
Source: OECD calculations based on REVEC data, provided for use in this report in accordance with confidentiality and privacy rules (accessed in January 2024). See Box 2.2 for additional details.
Semiconductors are a prime example of a truly global value chain with many different production segments and stages. Reaping the benefits of further integration into the global semiconductor value chain requires continued efforts to lower barriers to international trade through international agreements and trade facilitation measures.
Costa Rica’s main exports of semiconductor products are processors, with the United States being its main trading partner, and it presents a high degree of specialisation on chip exports (measured by revealed comparative advantage, RCA). The country relies heavily on imports of electronic integrated circuits parts and semiconductor manufacturing equipment, mainly from the United States and Asian economies, based on the 2023-2025 average. The share of domestic value-added (as opposed to foreign value-added) embodied in electronics sector exports increased until 2014. However, from that year onward, the share of foreign value-added began to increase again.
Enhanced trade between Costa Rica and regional partners (e.g. Mexico and Panama) in semiconductors and other electronic products can help support better integration into the global and Latin American semiconductor value chain. Joint efforts to leverage existing infrastructure, technology and human capital can support the development of a thriving regional semiconductor ecosystem while increasing the resilience of value chains.
Understanding the transaction network between electronics and other sectors is key to clarifying supply chain dynamics. The early stages involve sourcing raw materials (upstream), while the later stages focus on processing intermediate materials into final goods. Supply chain dynamics are especially important for the semiconductor industry, which operates globally in various segments (e.g. frontend and backend manufacturing).
Identifying upstream and downstream connections of the semiconductor industry in Costa Rica using transaction data provides a comprehensive picture of the country’s broader semiconductor ecosystem. The ecosystem is diverse and includes upstream services such as electric power generation, logistics and transportation, and upstream manufacturing activities such as treating metals and plastic products. The sector is supplied by a wide range of firms, varying in size, type (domestic or foreign) and sector specialisation. Downstream linkages include, first and foremost, the medical devices industry, followed by a considerable margin by industries such as processing and preserving meat and manufacturing of other fabricated metal products. Transactions between the electronics and downstream sectors have been largely insular, with foreign firms predominantly engaging with other foreign firms.
The high degree of connectedness between the electronics sector and the energy and transport sectors not only underlines the importance of infrastructure but also suggests ample scope to develop an ecosystem of suppliers of manufactured inputs, parts and components used in the electronics sector in general, and in the semiconductor industry in particular. Developing domestic suppliers for the semiconductor business could help attract additional semiconductor investment. Further developing downstream sectors, such as medical devices, aerospace and other important semiconductor-using sectors, will continue to provide a growing domestic market for locally produced semiconductors.
As high-tech industries – including semiconductors – grow in importance, reliable and comparable data on semiconductor-related trade become increasingly important for understanding Costa Rica’s competitive position and the contribution of these activities to the economy, strengthening the evidence base for policy analyses.
2.2.1. Costa Rica’s exports of semiconductor-related products
Costa Rica has historically been known for exporting agricultural goods, including products such as pineapples, bananas and coffee. Over recent decades, however, the country’s export basket has diversified, with high-tech and specialised manufactured goods – particularly medical devices – now playing a central role. Electronic and semiconductor-related activities also form part of this broader shift toward more technologically intensive exports.
Costa Rica maintains a persistent trade deficit in semiconductor-related products. Over the 2023-2025 period, average net imports amounted to USD 122 million for chips, USD 47 million for semiconductor manufacturing equipment, USD 95 million for photosensitive devices, and smaller deficits for foundry inputs and other categories. Bilateral patterns show that the United States is by far the most important trading partner for Costa Rica’s semiconductor products over this period (Figure 2.14, Panel A).13 Average exports to the United States reached USD 57 million, while imports averaged more than USD 102 million over the same period, resulting in a bilateral trade deficit of about USD 45 million.14 Costa Rica’s trade flows in semiconductor‑related products show significant year‑to‑year variability, partly due to the presence of a few large exporters whose strategic decisions on supply chain location significantly influence aggregate flows.
Despite maintaining a positive bilateral balance with a few economies, Costa Rica’s overall trade balance in semiconductor-related products remains negative due to substantial imports of semiconductor manufacturing equipment (Figure 2.14, Panel B). Imports of manufacturing equipment come mainly from the United States (USD 59 million), the People’s Republic of China (hereafter "China") and Malaysia (each with USD 11 million). Other categories, such as foundry and wafer inputs, contribute only minimally to overall trade.
Notes: In Panel A, the diamond markers indicate each trading partner’s net trade balance in semiconductor products (list available in Annex B). In Panel B, the “Others” categories are composed of raw materials, silicon wafers and wafer inputs. The complete list of semiconductor manufacturing equipment and other categories is available in Annex B.
Values represent the average for 2023–2025, due to 2025 being an atypical year. Trade flows in semiconductor manufacturing equipment are influenced by Intel’s strategic decisions in Costa Rica. Periods of reinstatement or expansion of assembly, testing and packaging (ATP) operations result in higher imports of manufacturing equipment whereas relocations lead to increases in exports as machinery is shipped out of the country, as observed in 2025.
Source: OECD calculations based on customs data from PROCOMER and BCCR, processed by COMEX according to the Balance of Payments Manual, Sixth Edition (BMP6) (IMF, 2009[13]). See Box 2.2 for additional details.
Figure 2.15 provides further detail on trade of specific semiconductor-related products in 2025. The most exported items were electronic integrated circuit (ICs) processors and controllers (USD 37 million) and other ICs not elsewhere classified (USD 34 million), followed by IC amplifiers (USD 21 million). Despite these export flows, most of the top traded products recorded sizable deficits. IC processors and controllers showed a deficit of around USD 92 million, and IC memories of USD 32 million, highlighting an opportunity for developing local suppliers in the long run. Smart cards, flash storage devices, and diodes (non-photosensitive) also exhibited a negative trade balance. Electronic circuits are made of various components, such as magnetic sensors and pads, and finding more cost-effective ways to acquire the necessary inputs, either leveraging existing trade treaties or promoting regional or local production and innovation, can help enhance the Costa Rican semiconductor ecosystem.
Notes: The figure displays the five semiconductor‑related products with the largest export values and the five with the largest import values. ‘ICs – Processors and controllers’ (where ICs denotes integrated circuits) appears in both lists, as it is simultaneously a major imported input and a major exported product. The complete list of semiconductor products is available in Annex B.
Source: OECD calculations based on customs data from PROCOMER and BCCR, processed by COMEX according to the Balance of Payments Manual, Sixth Edition (BMP6) (IMF, 2009[13]). See Box 2.2 for additional details.
2.2.2. Insights from data on trade in value-added
OECD data on trade in value added (TiVA) provide additional insights into the integration of Costa Rica into global value chains (OECD, 2024[12]). Figure 2.16 suggests that from 1995 to 2013, the share of domestic value-added15 in electronics exports grew considerably from 58% in 1995 to a peak of 84% in 2013. The share of domestic value-added in electronic product exports is high compared to other Latin American countries, such as Mexico (Figure 2.16). Efforts to develop the ecosystem of local suppliers of semiconductor firms in Costa Rica would help further increase the domestic value-added content of electronics exported by Costa Rica.
Note: This figure shows the contribution of domestic and foreign value-added as a percentage of gross exports. The lines show the domestic value-added share of gross exports (EXGR_DVASH TiVA series) in Chile, Costa Rica and Mexico.
Source: Calculations based on OECD (2024[12]), “Trade in value-added”, https://doi.org/10.1787/data-00648-en.
Figure 2.17 shows the share of intermediate inputs imported by the electronics sector that is embodied in Costa Rican exports (re-exported intermediate inputs, REII) as a percentage of total intermediate inputs from the electronics sector. This indicator reached almost 40% in 2019 and has been increasing again in recent years. With almost 40% of intermediate electronics inputs coming from abroad, Costa Rica could consider whether some of those products could be sourced locally as part of the strategy to develop the local ecosystem of suppliers for semiconductor firms, which could help attract additional semiconductor investment.
Notes: The figure shows the re-exported intermediate imports as a share of intermediate imports (IMGRINT_REII TiVA series) for the electronics sector. This indicator reflects the share of intermediate inputs imported by the electronics sector in Costa Rica that is used domestically by Costa Rica in producing goods and services for export (both indirectly and directly) as a percentage of total intermediate inputs (from the electronics sector) (OECD, 2023[15]). The indicator provides a measure of the importance of intermediate imports in producing goods and services for export and their role as a source of international competitiveness.
Source: Calculations based on OECD (2024[12]), “Trade in value-added”, https://doi.org/10.1787/data-00648-en.
Figure 2.18 shows how the Costa Rican electronics sector’s value-added is distributed across foreign economies. This measure reflects how this value-added is connected to the final demand of consumers in other economies through exports of final goods and services and, indirectly, via exports of intermediates that reach foreign final consumers (OECD, 2023[15]). Costa Rican electronics mainly serve the US market, as expected given geographical proximity.
Notes: The figure represents how Costa Rican electronics sector value-added is distributed across economies, with each bar representing the share of each economy (summing to 100%) for 1995 (diamond markers) and 2020 (bars). The series is defined as domestic value-added generated by the Costa Rican electronics sector embodied in foreign final demand by partner economy shares (FFD_DVAPSH TiVA series). It provides a value-added perspective of domestic industries’ relative connectedness with other economies (OECD, 2023[15]).
Source: Calculations based on OECD (2024[12]), “Trade in value-added”, https://doi.org/10.1787/data-00648-en.
Increased co-operation with Mexico and other countries in Latin America can help create synergies, identify comparative advantages that allow for economies of scale, and foster the role of Latin American countries in the global semiconductor value chain.
Figure 2.19 shows the distribution of the electronics sector’s foreign value-added by economy of origin.16 This indicates some degree of diversification, with a relative decline in the shares of the United States and Japan. As of 2022, the United States remained the main source of foreign value-added, with contributions also from China and, to a lesser extent, Chinese Taipei and Viet Nam. In 1995, 61% of foreign value-added to electronics embodied in Costa Rican final demand came from the United States. This share fell to less than 45% in 2020, while China’s share increased from less than 1% to 19% over the same period.
Notes: The figure represents how foreign value-added of the electronics sector in Costa Rican final demand is distributed by economy of origin, with each bar representing the share of each economy (summing to 100%) for 1995 (diamond markers) and 2020 (bars). The series is defined as the electronics’ foreign value‑added in domestic final demand, by economy of origin shares (DFD_FVAPSH TiVA code). The series provides a value-added perspective of a domestic economy’s reliance on value-added from other economies and regions (OECD, 2023[15]).
Source: Calculations based on OECD (2024[12]), “Trade in value-added”, https://doi.org/10.1787/data-00648-en.
2.2.3. Specialisation, concentration and trade dependencies
The revealed comparative advantage (RCA) is an indicator that can help assess Costa Rica’s relative specialisation within different segments of the semiconductor value chain. This indicator compares a country’s share of exports in a particular segment to the global share of those exports. Figure 2.20 shows that, as of 2021, Costa Rica currently focuses on exports of chips, reflecting the market structure discussed above. This is not the case for raw materials or manufacturing equipment. Even though none of the countries in the region exhibit a high level of specialisation in these two segments, Chile has the highest relative specialisation in raw materials and Mexico in manufacturing equipment.
A limited number of countries supplying certain goods can induce trade dependencies that may ultimately result in supply bottlenecks, shortages and higher prices. The Herfindahl-Hirschman Index (HHI) is a measure of concentration that is computed for each commodity imported to Costa Rica to identify dependencies. Additional criteria are used as part of this analysis to determine if Costa Rica is trade-dependent for a specific product (see Annex I for details).
Figure 2.21 below shows the number of dependencies identified using this methodology over two periods. From 2012 to 2014, 22 trade dependencies were identified for Costa Rica, mainly associated with importing final semiconductor products (7 trade dependencies) followed by manufacturing equipment (6). From 2019 to 2021, trade dependencies decreased to 18, of which 10 correspond to trade flows with the United States. Five dependencies were associated with the import of semiconductor manufacturing equipment and four with final semiconductor products. The number of trade dependencies also reflects the extensive network shaped by the free trade agreements signed by Costa Rica (see Chapter 3).
Notes: The figure shows the RCA indicator in logarithmic scale. An RCA value of above 1 would indicate relative specialisation (Annex I).
Source: OECD calculations based on UN (2023[16]), United Nations Commodity Trade Statistics Database, https://comtradeplus.un.org/ (accessed on 14 January 2025).
Note: Each arrow denotes one dependency at the economy-product level. See Annex I for more details.
Source: OECD calculations based on UN (2023[16]), United Nations Commodity Trade Statistics Database, https://comtradeplus.un.org/ (accessed on 14 January 2025).
2.2.4. The role of the electronics sector in the domestic economy
The evolution of suppliers to the electronics sector between 2009 and 2019 shows that there have been changes in the relative importance of each upstream industry in Costa Rica. Interestingly, energy supply, which was not among the top 10 upstream industries until 2013, has grown steadily to become the most important supplier (in terms of value) in 2019. Similarly, warehousing has also grown as an important supplier over the years. These statistics suggest that infrastructure such as energy supply and logistics (including transport infrastructure) are increasingly important aspects to consider for the Costa Rican semiconductor ecosystem (see Chapter 3 for a detailed discussion about infrastructure).
Mapping the electronics sector’s upstream and downstream connections helps identify which domestic industries are currently supporting its growth and which could be leveraged to foster deeper integration and productivity spillovers. The ecosystem requires inputs from various sectors, with some standing out as major suppliers (Figure 2.22).17 In 2022, electric power generation led the list of suppliers with a contribution of 14% of the purchases made by the electronics sector, followed by other transportation support activities (8%) and treatment and coating of metals (6%). Other important suppliers include wholesale of other machinery and equipment (4%) and courier activities (less than 4%).
Note: The bars represent the share of each industry (ISIC 4-digit class) on the total transactions value, where the electronics sector was the destination in 2009. The diamond markers represent the share of each industry on the total transaction value, whereas the electronics sector was the buyer in 2009 and 2014. In 2009, there were 499 transactions with the electronics sector as the buyer and this number increased to 788 in 2014 and 749 in 2019. Transactions in unidentified industries were also included to calculate the shares for each identified industry.
Source: OECD calculations based on VAT data from the BCCR. See Box 2.2 for the details.
In contrast, the importance of the wholesale trade industry, which was the most important supplier (in value), has slightly declined recently and the same applies to postal and courier services, with the latter probably reflecting the impact of increased digitalisation.
Although the electronics sector in Costa Rica is mostly export-oriented, it has experienced significant changes in its domestic downstream buyers over the past few years (Figure 2.23). Until 2015, urban and suburban passenger land transport was the primary purchaser of electronic products, with 62% of total downstream purchases in 2009. However, the importance of this downstream industry has since declined, and, in 2019, it accounted for only about 5% of total downstream purchases.
In contrast, the medical devices industry has experienced major growth. This industry was the most important downstream electronics buyer, accounting for 60% of total purchases (equivalent to CRC 1.8 billion) in 2019, compared to only 4% in 2009. This shift reflects the increasing demand for medical devices and illustrates the type of complementarities that can support the expansion of the semiconductor industry. Further developing downstream industries, such as medical devices, aerospace and other important semiconductor-using industries, will increase local semiconductor demand and provide another lever to help attract semiconductor firms.
Notes: The vertical bars represent the share of each industry (ISIC 4-digit class) on the total transaction value, where the electronics sector was the seller in 2009. The diamond markers represent the share of each industry on the total transactions value where the electronics sector was the seller in 2009 and 2014. In 2009, there were 123 transactions with the electronics sector as the buyer and 89 transactions in 2014. This number decreased to 70 in 2019. Unidentified buyers were also included in the data analysis.
Source: OECD calculations based on VAT data from the BCCR. See Box 2.2 for additional details.
Transaction data also allow for distinguishing relationships with foreign and domestic firms. This analysis focuses on purchases made from firms operating within the country, whether domestic or foreign-owned, rather than on imports from firms located abroad. Public services such as electricity, gas and steam stand out with the largest share of domestic providers. Other activities, such as warehousing (support for transport) and retail trade, are among the activities with the highest share of domestic suppliers (Figure 2.24). Domestic manufacturing firms of metal products, rubber and plastic are also connected to the electronics sector, but to a lesser extent. Most upstream transactions with rubber and plastic products and real estate involve foreign firms. Transactions within the electronics sector take place almost exclusively between foreign firms.
In terms of downstream linkages of the electronics sector, the latter is exclusively connected to domestic firms with land transport and transport via pipelines (Figure 2.25). Meanwhile, industries like fabricated metal products and medical devices exhibit a combination of both domestic and foreign firms. Increasing opportunities for downstream connections, particularly with domestic firms in these and the electronics sector, could provide growth opportunities for the Costa Rican economy.
Inputs to the electronics sector in Costa Rica come from firms of different sizes. For five out of the top 12 domestic upstream sectors, the majority of the transactions of electronics firms take place with large firms (more than 100 workers), namely those linked to electricity, gas, steam and related, insurance and related, postal and courier activities, chemicals, and services to buildings (Figure 2.26, Panel A). Most transactions with the other top-12 upstream sectors take place with smaller firms, including those offering fabricated metal products and rubber and plastic products in the manufacturing sectors. Domestic downstream transactions of the electronics sector with the other manufacturing (including medical devices) sector occur only with large firms (Figure 2.26, Panel B).
Costa Rica adopted an FDI-led development strategy for high-tech manufacturing, which boosted competitiveness and generated significant productivity spillovers for domestic firms in overall manufacturing and services (OECD, 2018[17]), albeit with important differences across sectors: indeed, the productivity gains were less impressive for local high-tech firms. While foreign subsidiaries contribute to productivity spillovers, the process of technology absorption is not automatic (OECD, 2018[17]) and entails know-how transfers to domestic firms (Giuliani, 2008[18]) that require focused efforts to increase capabilities in local firms, notably when the expertise gap is significant (Javorcik, 2004[19]). Efforts such as the Linkages (Encadenados) programme and a dedicated semiconductor National Cluster Program (see Chapter 3) can help increase the integration of the electronics sector into other parts of the Costa Rican economy.
Note: The figure shows the composition of upstream transactions value by type of supplier firm (domestic or foreign-owned) by sector (ISIC 2‑digit division, unlike Figure 2.22 which employs ISIC 4-digit class) that have the most transaction value with the electronics sector.
Source: OECD calculations based on VAT data from the BCCR. See Box 2.2 for the details.
Note: The figure shows the composition of downstream transactions by type of buyer firm (domestic or foreign-owned) by sector (ISIC 2-digit division, unlike Figure 2.23, which employs ISIC 4-digit class), which has the most transaction value with the electronics sector. The number of downstream sectors is smaller due to fewer transactions compared to Figure 2.24.
Source: OECD calculations based on VAT data from the BCCR. See Box 2.2 for the details.
Note: Panel A shows the composition of total upstream transaction value by type of supplier firm. Shades of blue represent the share of transactions coming with large firms (non-large: equal to or fewer than 100 workers, large: more than 100 workers). Dark blue (white) indicates that 100% (0%) of transactions are with large firms. The sectors (ISIC 2-digit divisions) shown are those with most transaction volumes with the electronics sector. Unlike Figure 2.22, this figure uses ISIC 2-digit classifications. Panel B shows the composition of downstream transactions with large firms following the same criteria for shades of blue. The number of sectors listed in Panel b is smaller due to fewer transaction values with industries downstream of semiconductors.
Source: OECD calculations based on VAT data from the BCCR. See Box 2.2 for the details.
Costa Rica makes considerable investments in education but has experienced recent setbacks in OECD Programme for International Student Assessment (PISA) performance, falling significantly below the OECD average in mathematics and science. In Costa Rica, important factors such as the socio-economic background and available school infrastructure shape educational outcomes (Maravalle and González Pandiella, 2023[20]). For example, children from low-income households have a lower secondary enrolment rate than their high-income counterparts. The unequal distribution of opportunities poses a significant barrier to enhancing educational outcomes scores. Broadening access to science, technology, engineering and mathematics (STEM) higher education, in particular by providing science and technology opportunities to more students with the relevant high school curricula and skills, including efforts to reduce dropout rates in STEM careers, would increase the pool of available talent for semiconductor and other high-tech industries, including medical device manufacturing. Existing support (e.g. scholarships or loans as described in Chapter 3) is an important step to help expand the pool of female talent and students from disadvantaged socio-economic backgrounds in STEM.
Moreover, the relatively small share of science and engineering graduates, coupled with anecdotal data from the Costa Rica Institute of Technology (Instituto Tecnológico de Costa Rica, TEC) showing that admissions are much lower than eligible students, suggests strategies such as prioritising the expansion of the capacity at higher education institutions providing science and engineering and other STEM career opportunities would be important. Expanding training capacity could lift constraints in the admission of students and help train talent in semiconductors and other high-tech areas. More student and teacher exchange programmes with universities could help students gain the necessary knowledge and skills for semiconductors (both directly and through teachers), while incentivising knowledge exchange and English language skills, and helping further increase the quality of engineering programmes in Costa Rican universities.
A renewed focus on STEM disciplines, a critical foundation for the semiconductor ecosystem for both girls and boys, would help ensure the chip workforce of the future and a sustainable semiconductor supply. The increasing integration of women into the relevant technical and scientific paths for the semiconductor ecosystem holds significant economic promise, presenting an opportunity to increase the pool of talent needed to meet demand. Unlocking the full potential of women’s contribution to this industry can help address skills shortage challenges and enhance total output and productivity helping promote their participation. Implementing targeted programmes to address dropout rates among women could be considered.
Segmenting and increasing the coverage of both public and private schools into more specialised programmes (such as scientific schools) or implementing educational practices from top-performing schools to a broader segment of students while ensuring equal access to affordable and quality education for all could also help enhance educational outcomes.
In order to keep up with the latest advancements in technology, the academic and technical curricula need to be agile and responsive. The required competencies are becoming more specific and the co‑operation between academia and industry should be stronger. Addressing these challenges with a proactive and ever-evolving approach built on quality processes and enhanced research, emphasising the need for immediate action, would ensure that Costa Rica’s education system remains competitive.
The current semiconductor ecosystem workforce includes a wide array of occupations, not least technical, scientific, professional and administrative staff. Ensuring that technical and scientific programmes meet the needs of semiconductor skills would help provide the necessary talent for the semiconductor ecosystem. Costa Rica has already identified relevant existing technical programmes that should be enhanced. Strategies to increase the appeal of vocational education and training (VET) programmes would help ensure that students follow and help the semiconductors and other high-tech industries meet their technical skills needs.
2.3.1. Supply
Costa Rica has made significant investments in education,18 from primary, post-secondary (non-tertiary)19 to tertiary, reaching as high as 5.8% of GDP for the 3 educational segments in 2020 (OECD, 2024[21]). Relative expenditures in primary to tertiary education ranked Costa Rica as the fourth economy with the highest share among OECD Member countries and partner economies (OECD, 2024[21]), as shown in Figure 2.27. Furthermore, the school life expectancy for students in Costa Rica is relatively high, around 15.8 years in 2019, ranking 4th in Latin America (UNESCO, 2024[22]). The following sub-sections provide insights into the performance of the VET system in Costa Rica.
Secondary education
Technical aptitude (i.e. understanding and applying technical concepts) is particularly relevant to engineering profiles required for the semiconductor industry. OECD PISA assesses the outcomes of education systems, including with regard to STEM, an important area for semiconductors. PISA focuses on the knowledge and skills of 15-year-old students in mathematics, reading and science and serves as a benchmark for international comparison.
Costa Rica has observed a downward trend for scores in mathematics and reading from 2012 to 2022, and scores remain below the OECD average (Figure 2.28). Costa Rica’s decrease in maths scores (from 402 in 2018 to 385 in 2022) and science (from 416 in 2018 to 411 in 2022) was more pronounced than in other Latin American economies.20 Nonetheless, Costa Rica performs better than other economies in the region covered by the PISA programme,21 ranking third in science and fifth in maths.
Note: The figure shows public spending on educational institutions as a percentage of GDP by level of education in OECD Member countries and partner economies, Argentina, Brazil, China, India, Indonesia, the Russian Federation, Saudi Arabia and South Africa.
Source: Based on OECD (2024[21]), Expenditure on Educational Institutions as a Percentage of GDP, http://data-explorer.oecd.org/ (accessed on 25 March 2024).
Notes: Scores are standardised to follow a normal distribution, with a mean of 500 points in OECD Members, and a standard deviation of 100 points. These scores summarise the mean performance of 15-year-old students, averaged across each country’s nationally representative sample. PISA data support rigorous cross-country comparisons of student achievement, highlighting differences in educational outcomes.
Source: OECD (2023[23]), OECD PISA 2022 Database, https://www.oecd.org/pisa/data/2022database/; OECD (2020[24]), PISA 2022 Technical Standards, https://www.oecd.org/content/dam/oecd/en/about/programmes/edu/pisa/publications/technical-standards/PISA-TS-2022-Technical-Standards.pdf.
Costa Rica’s level of adult educational attainment is lower than the OECD average. More than half of the population between 25-64 years of age only attained below upper secondary education (Figure 2.29). Efforts to increase the number of adults with secondary education would help build a critical mass of skilled workers to develop the semiconductor ecosystem. While the enrolment of students at the secondary level has increased in recent decades (World Bank, 2024[25]), this should be combined with enhanced efforts to reskill the adult population, whose education took place during a period of lower secondary enrolment rates that lasted until the 1990s (see Chapter 3).
Percentage of adults 25 to 64 years old
Notes: The figure shows adults’ (25-64 years) highest educational attainment level for OECD member countries and partner economies. All observations are from 2023 except for Chile, Indonesia, and South Africa (2022) and China (2020).
Source: OECD (2024[26]), Education at a Glance 2024: OECD Indicators, https://doi.org/10.1787/c00cad36-en.
The unequal distribution of opportunities poses a significant barrier to enhancing educational outcomes. Students from households with a high socio-economic background are more exposed to cultural stimuli, benefit from better conditions for studying at home, including the availability of books and access to Internet and digital devices, have better-educated parents who may also pay for extra lessons and, thus, have better educational performance (Maravalle and González Pandiella, 2023[20]). Policies should aim to reach the broadest student base to enhance educational outcomes effectively. Inclusive educational policies are pivotal for raising educational outcomes in Costa Rica.
Students from higher-income families tend to enrol in educational programmes at significantly higher rates. Figure 2.30 shows that the enrolment gap between the highest and lowest income quintiles is especially pronounced in two key age groups: 3-5 and 18-23 years old. While there has been progress in narrowing this gap among young children (3-5 years old) and teenagers (13-17 years old), the disparity remains high for young adults (aged 18-23), with a difference of almost 38 percentage points, which high dropout rates of students from disadvantaged socio-economic backgrounds could explain. This persistent gap highlights the ongoing challenges students from lower-income families face in accessing higher education, underscoring the need for targeted interventions and support for students from disadvantaged households who want to pursue a higher education path.
Differences in performance between public and private schools in Costa Rica disappear after accounting for students’ and schools’ socio-economic status (CONARE, 2021[27]). Ensuring equal opportunities in education would substantially improve learning outcomes: for example, if all students performed as the average student from a private school, Costa Rica’s reading score would increase to 460, approaching the OECD average of 485 (CONARE, 2021[27]).
Notes: The inter-quintile enrolment gap is the percentage point (p.p.) difference in gross enrolment rates between students from the highest quintile income (5th) and those from the lowest quintile income (1st). Gross enrolment rates are the share of a given population attending any educational level by age and equivalised income quintiles.
Source: OECD calculations based on CEDLAS and World Bank (n.d.[28]), Socio‑Economic Database for Latin America and the Caribbean, https://www.cedlas.econo.unlp.edu.ar/wp/en/estadisticas/sedlac/ (accessed on 20 June 2024).
Tertiary education
A well‑prepared tertiary education system is essential to support Costa Rica’s growing demand for high‑skill workers, particularly in science and technology fields. Costa Rica ranks 56th in tertiary education enrolment (UNESCO, 2021[29]). However, science and engineering graduates in Costa Rica account for only 15.9% of total tertiary graduates (UNESCO, 2021[29]), ranking 95th globally and below the world average (22.9%), underscoring the need to bolster the appeal of STEM careers in tertiary education. While this difference between the composition of graduates and enrolment might reflect student preferences, additional efforts to attract students to STEM disciplines would be important for increasing the potential new labour force in the semiconductor ecosystem.
Figure 2.31 (Panel A) shows that the number of new undergraduate STEM students grew from 38 600 to 48 700 between 2014 and 2023. The number of graduates each year is significantly lower, although it increased from 4 500 to 6 400 from 2014 to 2022 (Figure 2.31, Panel B), signalling a dropout persistence in STEM fields.22 The University of Costa Rica (Universidad de Costa Rica, UCR) is the largest university in terms of the number of both first-time students and graduates.
Almost 40% of first-time enrolled students chose a STEM path in Costa Rica’s five public universities23 (represented by CONARE, see the complete list of careers in Annex D), whereas 31% of graduates are from STEM careers (Figure 2.32, Panel A). This composition difference means that during the educational process, the dropout rate of students in STEM careers is higher than that of those in non-STEM careers. The highest proportion of STEM enrolment and graduation is observed at TEC (Figure 2.32, Panel B), while the lowest is at the UNED.
Graduation rates in tertiary STEM fields are significantly lower than first-time enrolment rates, particularly for women. For instance, about 30% of women in tertiary education graduated in STEM fields in 2022, despite enrolment rates consistently above 35% (Figure 2.33, Panel A). Similarly, the difference between graduation and enrolment for men is also non-negligible, even if more men study STEM than women (Figure 2.33, Panel B). This suggests substantial dropout rates in STEM careers, notably for women. Dropout rates often reflect student’s failure to acquire essential skills in early childhood, exacerbated by frequent grade repetition later in life (OECD, 2024[26]).
Public universities, first-time students, and graduates
Notes: University of Costa Rica (UCR), Costa Rica Institute of Technology (TEC), National University of Costa Rica (UNA), Distance State University (UNED) and National Technical University (UTN). The list of STEM careers is available in Annex D.
Source: Statistics provided by the National Council of Rectors (Consejo Nacional de Rectores, CONARE) for this report.
Note: The vertical bars represent the share of enrolment (dark blue) and graduation (light blue) in STEM careers (as a percentage of all careers) at public universities in Costa Rica (CONARE). The list of STEM careers is available in Annex D.
Source: Statistics provided by CONARE for this report.
The TEC admission test reveals educational outcome variability in school types, with certain secondary education schools demonstrating higher success rates (Box 2.3). For instance, 33% of applicants from public schools were admitted, compared to 69% of private schools and 69.6% of semi-public schools (concession schools) (Cerdas, 2021[30]).24 Scientific public education is the highest performing school type in the standardised TEC entry tests (96% of students were eligible). Other types of public schools that also reached a high percentage of eligibility compared to non-specialised public education are experimental bilingual public schools (58%) and technical schools (36%).
Notes: Panel A shows the share of STEM first-time enrolled students and graduates among women from 2014 to 2022. Dark blue bars represent the share of women enrolled in STEM fields relative to all women in tertiary education. In contrast, light blue bars represent the share of women graduates from STEM fields relative to all female graduates. Panel B represents the same information for men. The list of STEM careers is available in Annex D.
Source: Statistics provided by CONARE for this report.
Instituto Tecnológico de Costa Rica (TEC) eligibility tests in science and engineering areas suggest that the high-school education segment presents some disparities, where non-specialised public education lags behind specialised public schools (i.e. scientific high schools), semi-public schools, and private schools. Eligibility to TEC is based on a competitive test. Students are then admitted based on TEC capacity and according to how they performed in the test and other minimum requirement conditions.
Figure 2.34 shows that while scientific schools perform high in the TEC admission examination, they represent a small fraction of the overall examinees (1.4% in 2022), and academic public schools, with an eligibility rate of only 28%, account for 39% of total examinees in 2022. Identifying and implementing effective practices of top-performing schools that can be transferable, including teaching methods and support services, would be important for increasing performance, including in communities with less favourable socio-economic backgrounds. Addressing underlying socio-economic disadvantages contributing to student performance gaps will improve educational outcomes nationwide and increase the potential labour pool size in Costa Rica, mainly in STEM areas. Learning outcomes in Costa Rica are strongly associated with socio-economic conditions (Maravalle and González Pandiella, 2023[20]).
By type of school of applicant student
Notes: The mosaic graph plots the number (and percentage) of students eligible to be admitted into TEC – i.e. students above the eligibility test threshold. Eligibility rates do not reflect admission rates. Total applicants: n=15 944. BE-SP: Bilingual experimental semi-public; SP-TI: Semi-public technical industrial. Other categories with low eligibility rates include public open education telesecondary (i.e. virtual), public artistic public, semi-public technical-professional, public adult education, rural public, and indigenous education. The share of each educational segment appears in the label parenthesis.
For more details on the admission process, see https://www.tec.ac.cr/sites/default/files/media/doc/indicaciones_2024-1.pdf.
To be eligible, students must obtain a score of at least 520 at the test conducted by the TEC. Passing the 520 threshold is a necessary but insufficient condition to access the TEC, which does not have the capacity to admit all eligible applicants.
Source: Cerdas (2021[30]), “Resultados de admisión al Tec desnudan la desigualdad en la educación pública”, La Nación, based on TEC entrance test results for 2022.
Vocational education and training
Upper secondary VET prepares students for higher levels of education and employment by providing them with sound basic and occupational skills. According to the latest OECD VET data, 30% of upper secondary students were enrolled in vocational programmes in Costa Rica in 2021 (OECD, 2024[31]). This figure falls short of the OECD average (42.4%), is lower than in other Latin American countries such as Chile (33.1%) and Mexico (35.4%) and is only higher than in Colombia (27.9%) and Brazil (11.2%)25 amongst all 5 Latin American countries included in the data.
In addition, recent OECD reviews have found that the VET system supplies mostly low-skilled technicians and provides few work practices and too few opportunities to acquire advanced digital skills or specialise in STEM sectors (OECD, 2023[32]). These data suggest that there might be room for improvement in education opportunities for students.
Costa Rica could benefit from adapting strategies from successful systems like the Swedish one to enhance the quality of VET (Box 2.4). By expanding the implementation of work-based learning more effectively, evaluating its performance and engaging social partners, Costa Rica could improve the overall VET outcomes for young students and adults alike by promoting dual vocational education.
While the 2019 dual VET law (Ley de Educación y Formación Técnica Dual) represents an important step forward in developing a dual education system, although its implementation has so far yielded modest results, with gradual progress across sectors and regions (EFTP, n.d.[33]; OECD, 2023[32]). For instance, only 6% of small and medium-sized enterprises and 8% of medium and large firms participate in it after three years of implementation (UCCAEP, 2021[34]). The first programme was organised by the National Learning Institute (Instituto Nacional de Aprendizaje, INA) and the semiconductor firm Intel in 2022 and 14 students split their time each week between the firm (3 days) and INA (2 days). Increasing the involvement of firms is crucial for the successful development of a dual education system, social partners (professional and employers’ organisations) especially must have real responsibilities in defining the overall vocational profile and standards, checking the students’ progress and granting credits and diplomas (OECD, 2023[32]).
An OECD review of VET in Sweden helps identify a number of strengths, including the active involvement of social partners and a robust evaluation culture that are key to a sound VET system (Kuczera and Jeon, 2019[35]).
The key messages from this review highlight the importance of improving co‑operation and consolidation across VET providers to maximise economies of scale. Resources can be better utilised by merging VET schools to create larger institutions. Empowering social partners is another key aspect, with a national framework for their involvement. Establishing local councils that help ensure co‑ordination at the local level is an important driver of increases in quality offered by VET schools.
Additionally, there is a strong emphasis on strengthening work-based learning and dual education, which both students and employers in Sweden highly value. Increasing the attractiveness of VET and creating pathways to post-secondary education is crucial to avoiding reduced VET enrolment. To attract working adults, programmes should be flexibly provided to combine work and study.
Finally, unlocking the potential of migrants through innovative programmes like vocational packages (cluster of courses leading to partial qualifications) is an opportunity to meet challenges related to skill shortages and an ageing population.
Source: Kuczera, M. and S. Jeon (2019[35]), “Vocational Education and Training in Sweden”, https://doi.org/10.1787/g2g9fac5-en.
Semiconductor-related programmes
Costa Rica is pursuing co‑ordinated efforts to identify educational programmes available to provide relevant human capital skills in the semiconductor industry. The growth in the number of graduates within information and communication technology (ICT) and the key semiconductor-related fields since 2000 has been considerable, increasing from 3 000 to nearly 11 000 in 2022. Of this total, the number of graduates in semiconductor-related fields increased from 603 to 3 035, while ICT graduates (excluding semiconductors) increased from 2 359 to 7 874. Out of these graduates, 28% were engaged in semiconductor-related occupations, while the remaining 72% belong to other ICT disciplines in 2022. Between 2000 and 2022, the number of individuals trained in key semiconductor-related fields rose from 16 to 60 per 100 000 inhabitants, indicating an annual growth rate of 8.3% (Hipatia, 2023[36]).
At a technical level, specialities such as “development and analysis of software and web applications”, “design and administration of networks and databases” and “electronics and automation” were identified as key educational programmes for semiconductors (Hipatia, 2023[36]). The design and administration of networks and databases programme have made a considerable contribution to technical-level talent growth, with a significant increase since 2018 and more than 5 000 annually. At the tertiary level, key programmes include computer science, informatics and various engineering disciplines such as information and communication, electromechanical, electrical, electronic and mechanical engineering and mechatronics. The information and communication engineering bachelor programme has experienced steady average growth, with more than 1 500 graduates annually since 2021.
The lack of postgraduate qualifications among graduates in Costa Rica could potentially hinder the country’s technological advancement. While there has been an increase in graduates in semiconductor-related fields, less than 5% (120 students) had postgraduate education in 2022. Encouraging more doctoral (PhD) graduates could advance technological sophistication and strengthen Costa Rica’s integration into the global value chain (Hipatia, 2023[36]).
Geographical distribution of talent and training
Like other industries in Costa Rica, the semiconductor industry relies heavily on graduates located in the Greater Metropolitan Area (GAM) area around San José, where most of the country’s economic activity concentrates. However, Figure 2.35 shows that almost one fourth of the total graduates relevant to the semiconductor ecosystem reside outside the main urban hub, highlighting the country’s geographic diversity and the potential for opportunities outside the main urban hub.
Notes: Panel A represents the share of graduates inside and outside the GAM area. Panel B lists cantons with the highest numbers of accumulated graduates in semiconductor fields in Costa Rica, from 2000 to 2022. Dark blue represents the cantons inside the GAM and light blue represents those outside. The list of the disciplines required by the semiconductor industry is available at Hipatia (2023[36]).
Source: OECD calculations based on Hipatia (2023[36]), “Caracterización de la oferta de talento calificado en carreras requeridas por la industria de semiconductores, - Programa Estado de la Nación”, https://hipatia.cr/aportes/caracterizacion-de-la-oferta-de-talento-calificado-en-carreras-requeridas-por-la-industria.
University places in Costa Rica predominantly favour the GAM area, with 5 400 (26%) extended to cantones beyond the GAM (Figure 2.36, Panel A). This distribution spans the five public universities from CONARE (Figure 2.36, Panel B). The distribution of places remains broadly in line with economic activity, with the GAM representing 77% of the national GDP (BCCR, 2024[37]) and 74% of university places in 2021.
Notes: Panel B shows the breakdown of university places by region and university in 2023. University of Costa Rica (UCR), Costa Rica Institute of Technology (TEC), National University of Costa Rica (UNA), Distance State University (UNED) and National Technical University (UTN).
Source: Inter-university Planning Division of the National Council of Rectors (OPES-CONARE) provided the data for this report’s figure. The data were compiled from information supplied by the state universities’ Vice Rector’s Offices for Teaching.
Migration
Human capital flight (or “brain drain”) presents significant challenges for developing countries as well as some developed countries (OECD, 2012[38]), as the outflow of skilled professionals in search of better opportunities abroad depletes the talent pool that was trained locally. Net migration provides a quantitative measure of workforce loss and a proxy for brain drain, considering that emigration also includes highly skilled individuals. Countries in Latin America and the Caribbean region are characterised by sustained negative net migration. Costa Rica stands out as an outlier: it has not experienced a single year of negative net migration between 1960 and 2022 (Figure 2.37). This indicates that Costa Rica might be better placed to attract workers from abroad and maintain its highly skilled professionals compared to other countries in the region (see Chapter 3).
Note: LAC: Latin America and the Caribbean.
Source: OECD calculations based on UN (2024[39]), World Population Prospects, https://population.un.org/wpp/ (accessed 14 January 2025).
With respect to the Costa Rican scientific and academic diaspora, Estado de las capacidades en Ciencia, Tecnología en Innovación (Hipatia) collects information on “brain drain” as part of the State of the Nation Program (Programa Estado de la Nación). In 2021, almost half (49.2% of a sample of 784 people) of the scientific diaspora indicated that they left the country for reasons of study, mainly postgraduate programmes, and ended up settling abroad after finishing their studies (CONARE, 2023[40]). Other relevant indicators include the lack of willingness to return to Costa Rica. Figure 2.38 (Panel A) provides statistics by occupation. It shows that 45% of Costa Ricans in engineering and technology who are currently abroad do not plan to return to the country. In contrast, in computer engineering and communication, the share rises to 59% (Figure 2.38, Panel B). This presents a missed opportunity for ensuring the talent base to develop the Costa Rican semiconductor ecosystem and overall manufacturing. See Chapter 3 for a discussion about potential measures that can be considered to attract the diaspora back home.
2.3.2. Demand
OECD analyses of semiconductor skills based on job offer descriptions suggest that the most sought-after semiconductor skills (top five) are communications, management, operations, leadership and security policies. With regard to semiconductor-specific skills, the most required are moulding, dicing, wave soldering, swaging and lamination. These skills show that the industry requires a blend of technical and soft skills. Should the semiconductor industry need to consider skilled workers from other industries, the motor vehicle parts industry would likely include workers with very similar skills. Importantly, the medical equipment industry in Costa Rica seems to require several skills similar to those of semiconductors. While there are benefits from having a common pool of talent, further growth in the medical devices industry and other industries requiring similar skills will put additional pressure on an already limited talent pool.
According to a recent analysis in Costa Rica (Hipatia, 2023[36]), the most relevant curricula for the semiconductor industry at the technical level are: i) Development and analysis of software and web applications; ii) Design and administration of networks and databases; and iii) Electronics and automation. At the bachelor level, the key subjects identified are: i) computer science and informatics; ii) information and communication engineering; iii) electromechanical engineering, iv) electrical and electronics engineering; v) mechanical engineering; and vi) mechatronics engineering.
Note: Panel A shows the occupational distribution of the Costa Rican scientific diaspora at the occupation-area level and Panel B at the sub‑area level for occupations in natural sciences of engineering and technology with 30 or more workers. The Costa Rican scientific diaspora map is available at: https://hipatia.cr/dashboard/diaspora-cientifica. The analysis is based on the State of the Nation Programme consultations, not on an inventory of all science and technology professionals abroad. Sample size = 784. Occupations based on CONARE (2023[41]).
Source: OECD calculations based on Campos Gallo, A., S. Sáenz León and V. Carvajal Vega (2023[42]), Atlas Nacional de Innovación, 2022, https://www.promotora.go.cr/web/Assets/pdfs/Atlas_Nacional_innovacion_2022.pdf, p. 53.
A Costa Rican talent survey conducted by COMEX focusing on the semiconductor industry revealed that the industry will need almost 1 200 new jobs by 2026 (in a conservative scenario).26 Despite a recent increase in graduates, a significant gap remains in STEM fields, particularly semiconductors. While the number of technical graduates has grown, only 14% have graduated in areas required by the semiconductor industry. At the bachelor level, only 26% of graduates belong to ICT and 6% to the semiconductor segment. Growing talent for semiconductors would require more students to choose STEM careers. In addition, the share of graduates with master’s and PhD studies is low, limiting the scope for R&D and innovation – both essential for a high-tech industry. According to COMEX’s survey, 66% of employment in the domestic ecosystem has tertiary education, underscoring the need to expand higher-level STEM education to sustain the industry’s growth.
The COMEX survey also finds that attention has been given to educational attainment and occupations rather than skills profiling, which might be a limitation in view of the multi-skilled nature of semiconductor jobs. Complementary skills such as English language proficiency have been found to be important and a limitation, while problem-solving and communication skills are highly valued and necessary to successfully perform any job across this industry.
Insights from job posting data on common skills in the semiconductor and other electronics industries in different countries
Lightcast data provide useful insights on the skills and qualifications most frequently sought by employers in the semiconductor and other industries (Box 2.5).
Analysing Lightcast online job postings provides valuable insights into the evolving demand of the labour market and identifies core competencies required by firms in the semiconductor industry (North American Industry Classification System [NAICS] code 3344), which policymakers may not always know. The job postings analysed in the context of this report are from Indonesia, Mexico and Viet Nam, countries that mainly focus on ATP activities: out of the 28 999 total job postings for semiconductors, 1 124 were from Indonesia, 26 491 from Mexico and 1 384 from Viet Nam.
The semiconductor industry requires a blend of transversal, social and specific skills. Transversal competencies, such as communications, management and operations skills, are in the greatest demand (Figure 2.39, Panel A). These generic skills complement specific technical proficiencies required in manufacturing processes (such as moulding, dicing and swaging) (Figure 2.39, Panel B). These specific skills form the technical toolkit necessary to work in the semiconductor industry. The complete list of generic skills is listed in Annex F and specific skills are listed in Annex G.
Notes: The findings come with a few important caveats. One limitation of this analysis is the limited sample of countries, which means that the results inherit the specificities of their semiconductor industry and other country-specific characteristics. In addition, the coverage of online job postings might be affected by several biases, including a bias towards more skilled jobs and the inclusion of jobs only available online. These job postings are a flow variable and not stock, meaning they reflect the ongoing additions to the job market over a specific period, rather than the total number of existing positions at any given time. Therefore, jobs with high turnover might be overrepresented in the data. Job listings are comprised of traits the employer would like the ideal candidate to possess but may not necessarily be required to be successful in the role.
Source: OECD calculations based on Lightcast (2023[43]), Lightcast Data - Data for the Next Move Forward, https://lightcast.io/products/data/overview.
Motor vehicle parts manufacturing is by far the closest to the semiconductor industry in terms of skill demand (Annex H). This industry involves the production of components vital for automotive assembly, which tend to require precision engineering and adherence to stringent safety regulations. This skill profile is similar to the manufacture of semiconductors, especially considering that the countries in the sample (Indonesia, Mexico and Viet Nam) mainly harbour ATP activities. Other similar industries do so to a much lesser extent and include the manufacture of beverages and pharmaceuticals, of medical equipment and supplies, as well as of navigational, measuring and electromedical, which also share similarities with semiconductors and require proficiency in software, precision machinery and electronics assembly.
Insights from linked employer-employee data
Linked employer-employee data provide a broader picture of labour supply and demand in the semiconductor industry. These data employ the Costa Rican Classification of Occupations (COCR) system. Although this occupation classification was last updated in 2023, the data relies on the COCR 2000 vintage. Updating the data to reflect the revised classification would help capture the evolution of technology and occupations changes over time.27 Since Intel is not included in this dataset due to statistical anonymisation rules, the employment figures presented here reflect only a subset of the total semiconductor workforce. For reference, COMEX reports 4 993 semiconductor‑related workers in total (COMEX, 2024[44]). Within this subset, the semiconductor industry employed less than 2 000 workers in Costa Rica, a figure that increased by 47% between 2011 and 2021. This industry encompasses a variety of occupations, including technical roles, scientific and administrative staff. Trends in these occupations can be obtained using the most aggregated level (one-digit, major groups) of the linked employer-employee data.28
The Costa Rican semiconductor workforce predominantly comprises occupations essential to manufacturing activities, especially ATP, including technicians, scientific professionals and management staff. In terms of broad occupational categories (COCR one-digit), “Assembly, plant, machine operators” represent the most common occupation in the Costa Rican semiconductor industry, with 1 370 workers in 2021.29 This occupation accounts for more than 70% of the semiconductor workforce and saw an increase of 54% over a decade (Figure 2.40, Panel A). “Medium technical and professionals” represent the second most common occupation, with around 200 workers (11% of the total workforce), followed by “Professional, scientific, intellectual” (7%) and “Craft production, construction, mechanics” (3%).
More disaggregated (four-digit) occupation data show that different types of assemblers and operators are the most common occupations employed by the semiconductor industry, with heterogeneous temporal trends. For instance, “Automated assembly line, industrial robot operators” saw a threefold increase in the last decade, reaching 1 000 workers. In contrast, “Machine tool operators” and “Electrical equipment assemblers” decreased drastically in the last decade (-37% and -61% respectively). STEM occupations are also on the list, with “Engineers” and “Technicians, assistants” in “Electronics, telecommunications” and “Electric, electrical engineering” in the fifth to seventh position (Figure 2.40, Panel B).
The profile of the medical devices industry workforce shares important similarities with semiconductors, as it employs the largest share in five out of the ten most demanded occupations by the semiconductor industry. The heatmap presented in Figure 2.41 displays the distribution of the most relevant semiconductor occupations employed between different industries. For example, “automated assembly line and industrial robot operators” are also highly in demand in the medical devices firms, with no other industry employing a significant share, while other essential occupations for semiconductor manufacturing, such as “industrial engineers, machine tool operators” and “electrical equipment assemblers” mainly work in this connected industry.
Notes: Panel B shows the most common occupational groups (COCR one-digit). Panels C and D focus on specific occupations (COCR four‑digit) in the semiconductor industry: Panel C shows the single most frequent occupation and Panel D covers the second to tenth most common occupations. Note that the number of workers differs from Figure 2.4 due to selection and methodological differences between REVEC and the linked employer-employee data. REVEC provides a more comprehensive view of the total workforce, while the linked employer-employee data includes firms listed in Table 2.1, therefore providing a lower bound of the semiconductor industry workforce. This figure reflects the annual average of workers, accounting for seasonality. Intel was removed from the selection of semiconductor firms to comply with Costa Rican statistical data anonymisation laws. Data describe the occupational structure of the subset of semiconductor firms captured in the linked employed-employee data, rather than the full semiconductor industry.
Source: OECD calculations based on linked employer-employee data from the BCCR. See more details in Box 2.2.
Notes: The heat map represents the distribution of the ten most frequent occupations at the four-digit level (presented in Figure 2.40) of the linked employer-employee data using the COCR 2000. The industries selected have the highest shares of these occupations. The ISIC sector 32 includes the medical devices industry. Intel was removed from the selection of semiconductor firms to comply with Costa Rican statistical data anonymisation laws. Data reflect the structure of the broader electronics sector (ISIC 26) rather than the semiconductor industry alone.
Source: OECD calculations based on linked employer-employee data from the BCCR. See more details in Box 2.2.
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[49] UNESCO (2011), ISCED 4: Post-secondary Non-tertiary Education, United Nations Educational, Scientific and Cultural Organization, https://uis.unesco.org/node/3079543.
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← 1. Please visit the following page for the OECD’s latest macroeconomic information on Costa Rica: https://www.oecd.org/economy/costa-rica-economic-snapshot/.
← 2. This assessment was conducted prior to developments announced in 2025 by Qorvo and Intel regarding the phase-out of their ATP plants outside of Costa Rica. These developments occurred after the reference period of the analysis. Nonetheless, Costa Rica’s prior experience in ATP operations and the broader characteristics of its human capital and business environment are important strengths of its semiconductor ecosystem.
← 3. Grupo Capris Engineering Services and Technical Support was founded in 1997 and started providing engineering support to semiconductor firms located in Costa Rica in 2013. In 2015, Capris Engineering also became a provider of printed circuit boards.
← 4. PCB manufacturing is not part of the semiconductor industry but an important downstream industry and part of the semiconductor ecosystem. PCB manufacturing is included in this report due to the relative importance of PCBs in the Costa Rican semiconductor ecosystem.
← 5. ISIC code 26 applies only to manufacturing activities in the electronics sector and excludes service-oriented firms, such as design firms, which do not fall under the manufacturing category.
← 6. To comply with Costa Rican statistical data anonymisation laws, Intel was excluded from the selection of electronics firms. Consequently, the reported figures represent the structure of the broader electronics sector (ISIC 26) rather than the semiconductor industry alone.
← 7. See more details about the National Cluster Program (Programa Nacional de Clústeres, PNC) in Chapter 3.
← 8. Note that the value-added series in this figure is not directly comparable to Figure 2.2 due to the removal of Intel from the selection of electronics firms, given high concentration levels non-compliant with statistical reserve protocols in Costa Rica.
← 9. Please note that to comply with Costa Rican statistical data anonymisation laws, Intel was removed from the selection of electronics firms.
← 10. Please note that to comply with Costa Rican statistical data anonymisation laws, Intel was removed from the selection of electronics firms.
← 11. Information on capital formation would enhance the overall understanding of labour productivity dynamics but is not at hand.
← 12. The GAM is a multiprovincial urban conglomeration and includes the capital city of San José and surrounding cities in provinces like Alajuela, Cartago and Heredia.
← 13. Measuring semiconductor‑related trade in Costa Rica is methodologically complex. Much of the activity is classified as transformation (manufacturing) services rather than as gross goods exports and imports, which standard trade statistics are designed to capture. Consequently, existing data offer only a partial and sometimes inconsistent picture of the sector’s trade flows. Firm-level confidentiality constraints and the lack of a tailored statistical framework further hinder comprehensive measurement. Improving the consistency of data treatment is therefore essential to accurately assess the scale and structure of semiconductor trade.
← 14. Mirror imports reported by partner economies may not match Costa Rica’s export statistics, see Box 2.2 for details.
← 15. Gross trade data in TiVA reflect double counting due to connected production stages, such as those of packaged and unpackaged chips.
← 16. The electronics sector (ISIC 26 division), as defined in this analysis, encompasses a broad range of products and manufacturing activities and is therefore not equivalent to the semiconductor industry. Semiconductors represent only one activity within the broader electronics sector and currently there is no perfect match between the semiconductor industry and the available industrial classification for statistics used in this report (ISIC).
← 17. This analysis distinguishes between transactions with domestic or foreign-owned firms located in Costa Rica rather than on imports from foreign firms abroad.
← 18. Public spending on education includes direct expenditure on educational institutions as well as educational-related public subsidies given to households and administered by educational institutions. This indicator is shown as a percentage of GDP. Public spending includes expenditure on schools, universities and other public and private institutions delivering or supporting educational services (OECD, 2023[50]).
← 19. Post-secondary (non-tertiary) education provides learning experiences building on secondary education, preparing for labour market entry. It aims at the individual acquisition of knowledge, skills and competencies lower than the level of complexity characteristic of tertiary education (UNESCO, 2011[49]).
← 20. Decrease in standardised examinations has been attributed to the COVID-19 pandemic and a teacher strike that affected the educative sector and 2018-2021 cohorts, from Hipatia (2023[36]).
← 21. Latin American countries covered in PISA: Argentina, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Jamaica, Mexico, Panama, Paraguay, Peru and Uruguay.
← 22. While the number of enrolled students and graduates for the same year does not allow for a precise calculation of dropout rates, a low number of graduates may indicate potential issues with student retention and a high dropout rate.
← 23. The five public universities are the University of Costa Rica (Universidad de Costa Rica, UCR), the Costa Rica Institute of Technology (Instituto Tecnológico de Costa Rica, TEC), the National University of Costa Rica (Universidad Nacional de Costa Rica, UNA), the Distance State University (Universidad Estatal a Distancia, UNED) and the National Technical University (Universidad Técnica Nacional, UTN).
← 24. Concession schools entail a contract between the public educational system and private education organisations to provide education for low-income students (Barrera-Osorio, 2006[48]).
← 25. Costa Rica’s share of upper secondary students enrolled in vocational programmes (%) is ranked 32nd out of the 38 OECD Member countries. The countries with lower shares are Canada, Colombia, Ireland, Japan, Korea and Lithuania.
← 26. Based on survey results provided by COMEX.
← 27. Occupation classifications may fall short in capturing the multi-skilled nature of jobs in the semiconductor industry and whole economy and multi-label classification systems have proved more efficient (Rahhal et al., 2023[47]).
← 28. This report draws on two distinct data sources: firm-level data and linked employee data (Box 2.2). While both sources provide data on workforce, there might be differences in the reported numbers of workers.
← 29. “Assembly, plant, machine operators” is the shortened version of the major occupational group 8 (installation and machinery of assembly and operation occupations) under the Costa Rican Classification of Occupations (COCR).