Semiconductors and microelectronics, the components found in numerous industrial products and digital technologies, are integral to the modern economy. In recent years, the global semiconductor and microelectronics industries have experienced significant shifts, as economies aim to develop their domestic ecosystems, diversify their supply chains and enhance their resilience. The Dominican Republic is seeking to capitalise on these developments. Although no semiconductor firms currently operate in the Dominican Republic, Presidential Decree 324-24 declares the development of a domestic semiconductor industry a “high national priority” and the National Strategy for the Promotion of the Semiconductor Industry, published in 2025, sets out the Dominican Republic’s plans to establish and grow the country’s semiconductor and microelectronics ecosystems.
This report analyses the opportunities, challenges and policy levers to support the development of the semiconductor industry, and the broader microelectronics industry, in the Dominican Republic. Analysis draws on both quantitative and qualitative evidence. Quantitative analysis leverages both aggregate and firm-level data to examine the evolution and performance of the Dominican Republic’s advanced manufacturing sector and understand the conditions in which semiconductor and microelectronics firms could operate. Qualitative analysis combines desk research with interviews of almost 40 stakeholders from government, industry, industry associations, academia and research, and labour unions to assess the institutional, policy and regulatory landscapes that could determine whether and how semiconductor and microelectronics firms choose to establish their operations in the Dominican Republic.
The Dominican Republic has many strengths, including an existing advanced manufacturing base, generous incentives in its free zone regime, political stability and democratic institutions, good transport infrastructure, and its geographic proximity to large export markets in the Americas. To fully seize the opportunities presented by the semiconductor and microelectronics industries, the Dominican Republic can further improve its enabling environment in five main ways:
Strengthen the institutional framework for semiconductor policymaking by establishing structures for cross-government collaboration, creating clear channels for engagement with industry and other non-governmental institutions, enhancing regional and international co‑operation related to semiconductors and microelectronics, and developing policy monitoring and evaluation capabilities.
Leverage the Dominican Republic’s free zone regime to attract semiconductor and microelectronics firms by exploring targeted investment incentives, facilitating the process for firms to establish operations in the free zones, promoting linkages between firms in the free zones and the local economy, and increasing the availability of industrial land.
Enhance the business environment for the semiconductor and microelectronics industries, including by nominating one government agency and a single one-stop shop to be responsible for semiconductor- and microelectronics-related foreign direct investment and exports, removing the remaining import tariffs on semiconductor-related products, expediting the environmental and construction permitting processes, and supporting access to finance for semiconductor and microelectronics firms and industrial parks.
Develop the Dominican Republic’s science, technology and innovation ecosystem by establishing robust indicators that adhere to international statistical standards, incentivising private investment in research and development (R&D), and reforming the National Fund for Innovation and Scientific and Technological Development to ensure faster and more targeted disbursement of public R&D funding, including for firms.
Improve electricity and water infrastructure by increasing renewables generation to ensure sufficient electricity supply for semiconductor and microelectronics firms, expanding and upgrading electricity transmission and distribution infrastructure, and incentivising investment in rainwater harvesting, water and wastewater treatment
