American companies to invest $1B in PH

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American companies are investing more than $1 billion in the Philippines in priority sectors like solar, electric vehicles (EV), digitalization and telecommunication and will create training and career opportunities for more than 30 million Filipinos in artificial intelligence (AI) and digital skills.

This was announced in a press conference in Paranaque City  by US Secretary of Commerce Gina Raimondo, who leads officials of 22 companies in  a two-day  presidential trade and investments mission in the Philippines.

In a separate press statement, the Presidential Communications Office said the Philippines is expected to produce some 128,000 semiconductor engineers and technicians by 2028 with the support from the United States’ CHIPS and Science Act.

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The Philippines is one of the seven countries that will be receiving funding from the US government, under its CHIPS Act which aims to boost research and manufacturing of semiconductors.

President Ferdinand Marcos Jr.  yesterday received the mission delegation where he reiterated the Philippines’  proposition to the US semiconductor companies to invest in a laboratory-scale wafer fabrication facility in the Philippines.

In the press briefing, Raimondo said some of the  investments of the delegation are ready to go and others have actually started.

“On this trip alone, these companies are announcing over a billion dollars of US investments, including creating educational opportunities to over 30 million Filipinos in the form of digital upskilling, AI upskilling and digital training,” she said.

Raimondo said the mission is announcing the following: the creation of an EV Education Center to train Filipinos for jobs in a very fast growing industry;  solar and nuclear projects to support the Philippine energy and climate goals; a new airline route opening up travel and tourism to Cebu among other projects.

United Airlines said last week it would launch new flights from Tokyo-Narita to Cebu,  starting July 31.

Microsoft announced yesterday it is expanding its commitment to accelerate the effective use of AI in the Philippines by advancing skilling, connectivity and cyber resilience through  a range of new partnerships and programs, including  helping government agencies develop tools to streamline citizen services and creating a training program to equip more than 100,000 Filipino women learners with AI and cybersecurity skills.

“I am totally confident this presidential trade and investment mission to the Philippines is just the beginning of the next wave of new and exciting economic engagements between our countries,” Raimondo said.

Raimondo said the investments are aligned with  Marcos’ invitation for the US to invest in high-impact projects.

During the courtesy call, Marcos invited  American companies to invest and support his administration’s “Build, Better, More” program which involves 198 high-impact priority infrastructure flagship projects worth  S$148 billion or over P8 trillion on physical connectivity, water resources, agriculture, health, digital connectivity and telecommunications, and energy.

Raimondo’s delegation includes top officials from companies like GreenFire Energy, Inc., Google Asia Pacific, Visa, United Airlines and KKR.

“The US-Philippine alliance is iron clad,” Raimondo said at a joint briefing with Philippine officials.

In a sideline interview, Trade Secretary Alfredo Pascual said Raimondo has committed to act on the assistance sought by the government  from the US Department of Commerce on trade issues like the detained apparel exports and shrimp paste shipments.

Pascual said the Philippines took the opportunity to raise the current situation of  electronics companies unable to bid on US government contracts due to a requirement in the US Trade Agreements Act.

Pascual said he also tackled with Raimondo the request for the reauthorization of the US Generalized System of Preferences and was informed that a bill has been filed in Congress seeking the same. (Jocelyn Montemayor)

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