Intel Corporation is an American multinational corporation and technology company with a goal to “create world-changing technology that improves the life of every person on the planet.” Intel serves as the world leader in semiconductor chip manufacturing supplying parts for many computer systems. Intel is a global operation within the Americas (United States [California, Oregon, Arizona, New Mexico, Texas, Massachusetts], Costa Rica, Mexico), Europe (Ireland, Germany, Poland), the Middle East (
Israel), and Asia (China, India, Malaysia, Vietnam). These international operations serve as research centers, manufacturing center, customer service locations, marketing firms, venture capital firms, engineering centers, assembly & testing facilities, software & hardware development centers, sales centers, and headquarters (located in California).
Intel has had a campus in Costa Rica, located in the province of Heredia, since 1997 that was originally a assembly and test manufacturing facility but has recently transformed into a research and service center. Intel aims to “transform Costa Rica into a regional powerhouse for semicondutor research, manufacturing, and talent development.” Their existing facilities in Costa Rica include a Research and Development Center, Processor Assembly and Testing unit, and a Global Services Center employing 3,300 direct staff and over 5,000 contractors. The facilities cover 26,000 square meters of factory space and 17,000 square meters of engineering labs.
Intel represents 60% of Costa Rica’s research and development exports supporting economic growth of the country, specifically up the Global Value Chain. It has directly and indirectly created jobs and catalyzed additional foreign direct investment. Intel also supports local industries, boosting smaller local economies. According to the World Bank “The period following the investment shows significant GDP growth, staggering increases in exports, and otherwise generally positive outcomes, although Intel’s size and volumes exaggerated the depth of Costa Rica’s economic downturns. Intel is responsible for a shift in the country’s top exports, from coffee and bananas to electric and electronic products.”
The social impact of Intel can be seen with the promotion and investment in STEM education across the country, including their “Let’s play engineering” program and “Vocational STEM” sessions. They work with public and private universities to provide technology support and help students improve their employability. Employees of Intel have access to their health care centers, fitness centers, banking services, and child care services. They have attempted to be environmentally aware of their impact by implementing recycling services, transitioning to more efficient electrical systems, and developing a sustainable water management program to reduce water consumption. Intel has also created the “Industrial Friends to the Environment” and the “Save Our Planet” programs in Costa Rica, while also supporting community environmental projects.
There is little to be found about the negative impacts of Intel in Costa Rica, in fact the company was selected to be names one of “2023 Most Ethical Companies” by the Business Ethics Leadership Alliance. However, it is still to worth it to mention that Intel’s strategic locations take advantage of low costs abroad and exploit human capital. Additionally the semiconductor industry has a really large climate footprint requiring huge amounts of energy and water and creating large quantities of hazardous waste.
Intel’s expansion into Costa Rica would best fit into the framework of neo-colonialism, although not to the same extent as other transnational corporations. The introduction of Intel was primarily advocated for by the Costa Rican government who then continued to work alongside Intel for economic development projects.
Sources:
- https://www.intel.com/content/www/us/en/corporate-responsibility/community-global-sites.html#tab-blade-1-0.
- https://www.intel.com/content/www/us/en/corporate-responsibility/intel-in-costa-rica.html?wapkw=costa%20rica#tab-blade-1-2.
- https://ticotimes.net/2023/08/31/intel-investing-1-2-billion-in-costa-rica.
- https://qcostarica.com/costa-rica-intel-recognized-as-one-of-the-most-ethical-companies-in-the-world/.
- https://www.theguardian.com/environment/2021/sep/18/semiconductor-silicon-chips-carbon-footprint-climate.