Promoting the Development of the Semiconductor Ecosystem in Panama

Panama is an open and services-oriented economy and a cornerstone of international trade, reflecting its privileged geographic position, excellence in transportation logistics and strong air and seaborne transportation infrastructure. As Panama seeks to position itself within the global semiconductor value chain, its regulatory framework provides important incentives for prospective foreign investors and it has been actively investing in initiatives to promote semiconductor-related talent, research and innovation. Continued investment in talent, reliable utilities infrastructure and the development of a local ecosystem of semiconductor suppliers and customers could help Panama capitalise on emerging opportunities to develop its ecosystem for semiconductors. This report examines opportunities and challenges for Panama’s ecosystem for semiconductors and provides recommendations to foster its development. Using both quantitative and qualitative analysis, as well as insights from a diverse group of stakeholders, the report offers policy recommendations across four key themes: co-ordinating and aligning incentives through the recently established Commission for Innovation in Microelectronics and Semiconductors, investing in skills and attracting talent to develop a semiconductor workforce, developing an ecosystem of local suppliers and customers for semiconductor firms, and ensuring reliable and sustainable utilities infrastructure.