Overview
From a U.S. standpoint, Costa Rica is a strategic and increasingly vital partner in the technology sector, particularly for high-value-added products and services. Its political stability, highly educated and bilingual workforce, and proximity to the United States make it an attractive location for diversifying supply chains away from Asia and closer to home. The focus of this relationship is shifting from traditional back-office services to more complex and strategic sectors, with a strong emphasis on collaboration and mutual benefit.
Leading Sub-sectors
Costa Rica’s technology landscape is defined by its robust ecosystem of foreign direct investment (FDI) and a growing domestic startup scene. U.S. companies are at the forefront of this growth, with a strong presence in the following areas:
Semiconductors and Advanced Manufacturing
Costa Rica is positioning itself as a key partner in securing U.S. semiconductor supply chains. President Chaves has made semiconductor investment a national priority, consistently linking secure supply chain cooperation and U.S. cybersecurity support to his vision of a modern economy that operates on secure networks and is a haven for U.S. FDI – the Silicon Rainforest of the Americas. In March 2024, Costa Rica launched a national semiconductor roadmap outlining actions in workforce development, investment promotion, company incentives, and regulatory improvements. Costa Rica is home to Intel’s only assembly, testing, and packaging site in the Americas, a critical hub for U.S. semiconductor supply chain security. Costa Rica’s aspiration is to build on that foundation and create a semiconductor ecosystem that complements and supports semiconductor manufacturing in the United States. Developing these supply chains in a geographically close, pro-U.S. country creates significant opportunities for U.S. semiconductor and supply chain companies.
Information and Communications Technology (ICT) Services
Costa Rica is a significant hub for outsourced IT services. U.S. companies such as Amazon, Microsoft, and IBM have established a presence for services ranging from software development and cloud computing to customer support and cybersecurity. The country’s talent pool is particularly skilled in key programming languages and IT strategy consulting.
Life Sciences and MedTech
Costa Rica is a global leader in medical device manufacturing, with 13 of the top 30 global MedTech companies having a local presence. This sector is increasingly integrating with technology, creating opportunities for digital health solutions, telemedicine platforms, and advanced manufacturing technologies.
Digital Infrastructure and Connectivity
World renowned companies from the United States have invested heavily in Costa Rica’s telecommunications sector, providing a strong foundation for internet and mobile connectivity. This is critical for the country’s digital transformation and supports the growth of other tech sectors, including e-commerce and remote work.
Opportunities
The trajectory of Costa Rica’s technology sector presents significant future possibilities for U.S. products and services, centered on a deepening of the strategic partnership that is already in place.
Cybersecurity
As Costa Rica digitizes its public and private sectors, the need for robust cybersecurity solutions will grow exponentially. U.S. firms can provide products and services to protect critical infrastructure, government systems, and corporate data, leveraging a trusted partnership to counter threats. In addition, the country is rapidly advancing towards 5G and beyond, which requires innovative cybersecurity solutions to protect against cyber threats to the telecom networks.
Artificial Intelligence (AI) and Machine Learning
Costa Rica is actively developing a national AI strategy focused on ethical, human-centered development. This creates an ideal environment for U.S. AI companies to partner on developing and implementing AI solutions in areas such as digital health, smart cities, and enhanced government services.
5G and Open RAN Technologies
The United States and Costa Rica have a joint commitment to promoting secure, open, and interoperable wireless technologies. This creates a prime market for U.S. telecommunications firms and service providers offering cutting-edge 5G and future 6G solutions, particularly those based on Open Radio Access Network (Open RAN) architectures. The Costa Rican Institute of Electricity (ICE), which manages the energy and telecommunications needs of Costa Rica, currently has multiple tenders in the market related to 4G/5G and Open RAN technology.
Digital Transformation and E-Government
The Costa Rican government is committed to a multi-year digital transformation strategy to modernize public services. This presents a vast market for U.S. companies specializing in cloud infrastructure, data governance, and secure digital identity platforms to support government efficiency and transparency.
Venture Capital and Startup Ecosystem
The country’s vibrant startup culture, supported by government and private programs, offers a fertile ground for U.S. venture capital and private equity firms. Investing in and mentoring Costa Rican tech startups can lead to innovation, job creation, and the development of new technologies for the regional and global markets.
Costa Rica is no longer just a destination for cost-effective labor but a strategic partner in the global technology ecosystem. For the United States, leveraging Costa Rica’s skilled workforce, favorable investment climate, and political stability is a critical component of a broader strategy to secure supply chains, drive innovation, and promote democratic values in technology. By focusing on high-tech collaboration in semiconductors, digital services, and emerging fields like AI and cybersecurity, the United States can solidify a mutually beneficial and resilient partnership for the future.
Telecommunications
For decades, Costa Rica’s telecommunications sector was a state monopoly, but a major shift occurred in 2008 with the passage of a law that opened the market to private sector competition. This ended the long-standing monopoly of the state-owned Instituto Costarricense de Electricidad (ICE). The new law created the Superintendency of Telecommunications (SUTEL) to regulate the newly competitive environment. Since then, the market has become much more dynamic, with several players vying for market share. The move to a competitive landscape has led to a greater variety of services, including mobile, fixed line, and internet options, as well as a greater focus on service innovation and customer experience from providers.
The incumbent, ICE, still maintains a significant position in the market, especially in fixed-line (broadband) services and mobile voice, but its dominance has been challenged by key competitors. These include private companies such as Liberty Communications and Claro Costa Rica. While the market is considered moderately concentrated, the presence of these strong competitors has led to intense price competition, particularly in high-growth segments such as mobile data and Pay TV. As a result, companies are constantly investing in infrastructure, such as fiber-optic networks, to meet the growing demand for high-speed connectivity and remain competitive in this evolving landscape.
Data from January 2025 indicates that there were 4.76 million internet users, which represents a 92.6% internet penetration rate of the total population. This is a significant increase from previous years and suggests that the vast majority of Costa Ricans have access to the internet, whether through fixed or mobile connections. Internet usage for cellular phones is prevalent in urban areas.
Following the 5G spectrum auction in early 2025, Costa Rica’s main telecommunications companies are rolling out their new networks. Liberty, in partnership with Ericsson, launched the first 5G Standalone (5G SA) network in the region. Claro is also actively deploying its 5G infrastructure, having secured a wide range of frequencies. The state-owned company, ICE, has initiated a “Pilot Program” for its customers to test its new 5G SA network. In addition, the state-owned subsidiary RACSA is offering 5G for private networks.
The authorities in Costa Rica are increasingly open to exploring newer technologies for 5G such as Open Radio Access Networks (Open RAN). In the Summer of 2025, ICE released a public tender for a 5G Open RAN system to be deployed nationwide. This has created a significant opportunity for U.S. software companies, as well as firms that design and manufacture backhaul components and infrastructure.