President Ferdinand Marcos Jr. pushed strongly for the grant of incentives to semiconductor locators while giving priority to the development of the local industry given its significant export boost to the economy.
The government’s focus had not always been on the semiconductor sector but on other industries, the president said during a meeting with the Private Sector Advisory Council-Education and Jobs Sector Group (PSAC-EJSG) in Malacañang on Tuesday.
“We really need to push for the semiconductor industry. It’s because, again, it’s not something that we had in mind but the situation — considering how much money we make as the income we get from exports already. We really should be focusing on it more. So, let’s do that now,” Marcos said.
The president said the semiconductor and electronics industry deserves more incentives, being a top dollar-earner and key driver of the economy.
Exports of electronics alone reached $36.28 billion from January to November 2024, official data showed.
With the passage of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act in 2024, incentives enjoyed by the industries such as those in car manufacturing may also be provided to semiconductor locators, the president said.
“We’ll do it through the IRR (implementing rules and regulations),” Marcos said.
Among the incentives under the “CREATE MORE” law are higher tax credits and lower corporate income tax; longer period for the implementation of the tax incentives; and tax exemptions on donations of capital investments, raw materials, accessories, and spare parts to the government, among others.
The president also pledged to work with the semiconductor and electronics industry on aligning the skills training and workforce development with the industry needs “to create opportunities for our graduates and drive growth that benefits every Filipino.”
“The semiconductor and electronics industry is a key driver of our economy, and its success starts with education,” he said in a social media post.
The president also asked for suggestions from the PSAC-EJSG on what more could be done to improve and strengthen the industry.
The advisory body presented to the president the country’s semiconductor and electronics roadmap and discussed some recommendations regarding the semiconductor and electronics industry, education, and workforce development.
It also suggested the creation of a National Education and Workforce Development Plan (NatPlan), which was supported by Mr. Marcos, and a review of the CREATE MORE law to cover the provision of incentives for the semiconductor industry.
It recommended that more members of the private sector should be encouraged to support the Adopt-A-School projects to help address the problems in the basic education sector.
Among the Philippines’ biggest exports to the US in 2023 were semiconductors and integrated circuits worth $3.1 billion, or 23.3 percent of its total exports to that country, according to the Philippine Communication Office.