Dominican Republic Advances Semiconductor Industry Strategy with International Support

By Guzmán Ariza, Attorneys at Law

The Dominican Republic is taking significant steps to advance its semiconductor industry with the recent issuance of Decree 324-24. This decree tasks the Ministry of Industry, Commerce, and MSMEs with developing the National Strategy for Promoting the Semiconductor Industry (ENFIS). The strategy aims to provide a clear roadmap for the sustainable and competitive growth of this vital sector, emphasizing its national priority status. The goal is to enhance innovation, attract foreign investment, and position the country as a strategic and reliable destination for semiconductor development.

Under the decree, the strategy will involve several key actions. It will start with a comprehensive analysis of the current semiconductor industry and assess opportunities specific to the Dominican Republic. The strategy will also evaluate the country’s existing capabilities and propose value propositions for industry stakeholders. Additionally, it will identify and exploit niche opportunities for the Dominican Republic to establish itself as a strategic player in the semiconductor market. The strategy will outline implementation axes, detail action plans, and establish timelines and responsibilities for the public sector to foster the industry’s growth. Furthermore, it will explore potential collaborations with foreign governments, international organizations, educational institutions, and both non-profit and for-profit entities.

During a recent visit to Santo Domingo from August 1 to 2, 2024, United States Under Secretary for Economic Growth, Energy, and the Environment, Jose W. Fernandez, engaged with Dominican officials on various topics, including the semiconductor industry. The discussions highlighted the Dominican Republic’s interest in integrating into global semiconductor supply chains and developing the necessary infrastructure, human capital, and policies for a thriving semiconductor sector. The country’s success in building robust manufacturing sectors for apparel, medical devices, and electrical products underscores its potential to advance into more sophisticated electronics, as noted in a report by the Information Technology and Innovation Foundation (ITIF).

This January 2024 report praised the Dominican Republic’s appeal for electronics industries, citing its 25 electronics companies that collectively employ 11,200 people, representing 6% of employment in its free trade zones.

Additionally, in May 2024, the Dominican Republic's Ministry of Industry, Commerce, and MSMEs formalized a Memorandum of Understanding (MOU) with Purdue University, a prominent U.S. research institution. This MOU represents a significant collaborative effort to advance the semiconductor industry and foster technological growth within the country.

From July 25 to August 1, 2024, the President of the Japan International Cooperation Agency (JICA) visited the Dominican Republic, meeting with President Luis Abinader and other key officials. The visit underscored Japan’s commitment to promoting sustainable socio-economic development between the two nations, marking 90 years of diplomatic relations in 2024. The JICA President expressed keen interest in collaborating on the Dominican Republic's semiconductor industry, acknowledging its global competitiveness and potential for development.