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The Dominican Republic offers a cost-competitive manufacturing environment. Two of the most notable electronics manufacturers in the Dominican Republic are Eaton Corporation and Rockwell Automation.
The Dominican Republic offers a cost-competitive manufacturing environment. In fact, the World Bank found that the hourly manufacturing labor cost in the Dominican Republic is $2.50, 6 percent the rate in the United States, approximately half that of Costa Rica or Mexico, and even less than in China.
As such, the Dominican Republic is poised to both play an important role in helping diversity and make more sustainable and resilient global supply chains in the semiconductor sector. Acknowledgments The author would like to thank Robert Atkinson, Marielle DeVos, and Ian Tufts of ITIF for their assistance on this report.
The 25 leading electronics manufacturers operating in the Dominican Republic's FZs provide a well-developed advanced electronics manufacturing base to serve as a springboard for the country getting into semiconductor ATP and PCB manufacturing.
The Dominican Republic is a prime candidate to capture increased North American investment in printed circuit board (PCB) manufacturing and offers considerable attractiveness as a destination for near-shored semiconductor assembly, test, and packaging (ATP) activity, in which semiconductors are tested and assembled into sophisticated packages.
Enterprises located in the Dominican Republic's FZs support over 197,600 direct jobs, produce over $8.1 billion in exports annually, and have made cumulative investments of over $7.16 billion in the country. The Dominican Republic originally introduced FZs in the 1960s to foster job creation and local industrial development.
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