Paraguay Aims to Enhance Tech Sector Through Taiwan Semiconductor Collaboration
Asunción, Monday, 22 September 2025.
Paraguay actively seeks to integrate into the global semiconductor industry by leveraging Taiwan’s expertise, aiming to boost its technological infrastructure and diversify its economy.
The Strategic Move Towards Semiconductors
At the Taiwan-Paraguay Technology Forum, held in Ciudad del Este from September 19 to September 21, 2025, Paraguay sought to establish a foothold in the global semiconductor industry. This forum, backed by the Taiwanese government, aimed to foster collaboration between the two nations, leveraging Taiwan’s 60% share of global chip production to bolster Paraguay’s technological capabilities [1]. The Paraguayan government highlighted its abundant clean energy resources and strategic location as key advantages in attracting semiconductor investments [1][2].
Implications for the European Electronics Sector
The collaboration between Paraguay and Taiwan could have significant implications for the European electronics sector. As the global semiconductor supply chain becomes more diversified, European electronics companies may find new opportunities in sourcing components from emerging markets like Paraguay. This shift could help mitigate risks associated with over-reliance on traditional suppliers [2][3]. Moreover, Paraguay’s entry into the semiconductor market aligns with broader trends of technological self-reliance, potentially leading to more competitive pricing and innovation in the European market [3].
Expert Insights and Market Data
Industry experts, including José Chih-Cheng Han, Taiwanese Ambassador to Paraguay, emphasize the strategic importance of this collaboration. Han noted that Taiwan’s success in the semiconductor sector is rooted in its state investment, technical talent, advanced infrastructure, and a culture of constant innovation [1]. With Paraguay’s commitment to attracting investments of approximately 200 million USD by 2026, the nation aims to become a hub for semiconductor production in South America [4]. This initiative is part of Paraguay’s broader strategy to diversify its economy away from traditional agriculture [4][5].
Actionable Insights for Decision-Makers
Decision-makers in the European electronics sector should consider the potential benefits of engaging with Paraguay’s emerging semiconductor industry. By establishing partnerships with Paraguayan firms, European companies can gain a foothold in a new market while diversifying their supply chains. As geopolitical tensions and pandemic-related disruptions continue to impact global supply chains, the need for resilient and diversified sourcing strategies becomes increasingly critical [3][5]. Paraguay’s integration into the semiconductor industry represents a strategic opportunity for European companies seeking to enhance their technological capabilities and competitive edge [5].