Semiconductor industry: the new strategy transforming the Dominican Republic
Santo Domingo, DR — The Dominican Republic took a significant step toward integrating into the global semiconductor industry value chain with the presentation of the National Strategy for the Promotion of the Semiconductor Industry (ENFIS) on August 12.
This initiative seeks to consolidate the country as a competitive destination for all stages of semiconductor production: research, design, assembly, testing, packaging, and logistics.
A solid legal framework for technological development
The ENFIS is based on Decree 324-24, which declares the promotion, innovation, and development of the semiconductor industry a high national priority. This legal framework complements the incentives and facilities established in Law 8-90 on the Promotion of Export-Free Zones, which has made this regime one of the country’s most consistent economic drivers.
In 2024, the Free Trade Zones attracted US$417.4 million in foreign direct investment, a 21% increase over the previous year, and generated more than 198,000 direct jobs, with a total impact of nearly 460,000 jobs.
What is the semiconductor industry?
The semiconductor industry encompasses the design, manufacturing, and marketing of microchips and integrated circuits, essential components found in virtually all modern electronic devices, from mobile phones and computers to automobiles, household appliances, and medical equipment. Their importance lies in the fact that they are the “raw material” of the digital age, enabling the functioning of technologies such as artificial intelligence, fifth-generation telecommunications (5G), and smart energy systems.
Furthermore, its geostrategic relevance has driven public policies and incentives in multiple countries to attract investment, strengthen R&D, and ensure resilient supply chains. This translates into new factories (“fabs”), design centers, and, above all, growth in assembly, packaging, and testing (OSAT) in regions with technical talent, reliable energy, and good logistics.
Furthermore, the semiconductor industry’s value chain is global and highly specialized: design firms (fabless) create chips and ship them to foundries for manufacturing; equipment and materials suppliers (such as photolithography and wafers) enable the processes; EDA software enables design and verification; and, finally, assembly, packaging, and testing (OSAT) prepares the product for integration into devices. It is a capital- and knowledge-intensive sector, where innovation capacity, logistical resilience, and intellectual property protection define competitiveness. For a clear and up-to-date overview, you can consult the Semiconductor Industry Association (SIA) .
Opportunities and challenges from a legal perspective
Ricardo Pellerano, managing partner of Pellerano & Herrera , noted that “The ENFIS represents a historic opportunity for the Dominican Republic to diversify its production mix and consolidate its position in high-value-added sectors. From a legal perspective, the challenge lies in ensuring a regulatory framework that combines agility, legal certainty, and fiscal competitiveness.”
He also highlighted the strategic importance of Free Trade Zones, stating: “Our experience advising Free Trade Zones demonstrates that the country already has the institutional foundation and infrastructure necessary to attract technological investment. Now, the key is to adapt incentives and processes to meet the specific needs of the semiconductor industry.”
To maximize this potential, the ENFIS should prioritize a comprehensive talent plan (technicians in microelectronics, mechatronics, and quality control), the creation of testing and metrology laboratories , and clear rules for intellectual property and traceability in the supply chain. It is also important to align incentives in free trade zones (equipment imports, R&D, training) with international standards and industry certifications, in addition to promoting linkages with local suppliers of packaging, chemicals, clean rooms, and specialized logistics.
The implementation of the ENFIS opens opportunities for local and international companies interested in advanced manufacturing, microcomponent assembly, testing, and packaging, as well as for logistics and technology service providers. This strategy would not only attract capital to the country but also strengthen the country’s position in this important international sector.