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Panama built its global relevance by connecting oceans and markets. Now, it wants to extend that role to the digital economy.

The government’s National Advanced Technologies Agenda combines strategies for artificial intelligence, semiconductors and microelectronics. Its goal is to position Panama as a trusted regional technology hub.

Why Panama Is Entering This Industry Now

Global semiconductor sales reached US$795.6 billion in 2025, rising 26.2% in one year as artificial intelligence increased demand for memory, processors and data center infrastructure. At the same time, supply disruptions and geopolitical changes have encouraged companies and governments to diversify production across more locations.

This creates opportunities for countries that can support chip design, testing, packaging, logistics and technology services. Panama is entering at a moment when these activities align closely with its connectivity and service economy.

What Panama Plans to Do

Rather than beginning with the fabrication of advanced chips, Panama is concentrating on segments that complement its existing strengths: semiconductor and circuit design, printed circuit boards, assembly, testing and packaging, and specialized logistics and distribution.

The government has allocated US$105 million to the semiconductor and microelectronics strategy. An Advanced Semiconductor Technology Center is operating at the Technological University of Panama, while Panamanian students are receiving specialized graduate training in Arizona.

Panama’s Place in the Regional Market

Costa Rica and Mexico provide useful examples of how Latin American countries can participate in the semiconductor economy. Costa Rica has attracted companies since Intel arrived in the 1990s, while Mexico relies on its massive manufacturing sector and US proximity.

Panama is pursuing a complementary position that combines global logistics, a dollarized economy, submarine fiber-optic connections, regional business services and established regimes for multinational companies. This could allow the country to serve technology businesses that need to coordinate data, specialized products and regional operations across the Americas.

Building the Talent

Panama’s most visible training initiative is Talent Up Panamá, developed with Google Cloud, the Inter-American Development Bank and the Technological University of Panama.

It offers up to 10,000 scholarships for artificial intelligence, data analysis, cloud computing, cybersecurity and technology leadership. Drake University also plans to introduce a Data Analytics degree at Ciudad del Saber, adding another component to the country’s developing technology ecosystem.

What This Could Contribute

The opportunity extends beyond semiconductor production. Estimates suggest that AI could generate between US$1.1trillionandUS$1.7 trillion in annual value for Latin America by 2030, while raising regional productivity growth.

For Panama, the agenda could create specialized employment, attract multinational operations and improve productivity in logistics, finance, healthcare, agriculture, tourism and government services. It could also strengthen Panama City as a regional business center, generating additional demand for offices, housing and connected urban communities.

The “digital canal” is a long-term national vision. Its progress can be measured through new investment, operating companies, specialized employment, technology exports and practical improvements in public services.

5 Things to Know

1. Panama is targeting specific semiconductor segments. It prioritizes design, printed circuit boards, assembly, testing, packaging, and logistics over manufacturing advanced chips.

2. The government is investing $105 million. The funds are allocated to support the national semiconductor and microelectronics strategy.

3. AI is driving the timing of this initiative. Global demand is accelerating as companies seek diverse and secure supply chains for tech infrastructure.

4. Panama will leverage its logistics and connectivity. The country combines its experience hosting regional business operations with its digital and maritime platforms to stand out.

5. Progress will be measured by tangible growth. Success will be tracked through new private investment, specialized employment, tech exports, and completed training programs.