The $1-billion expansion of American firm Texas Instruments Inc. will highlight the Philippines’ capability as a chip manufacturing hub, paving the way for similar investments of such magnitude, according to Tereso Panga, director-general of the Philippine Economic Zone Authority (PEZA).
Panga said similar to TI, these companies will be able to to take advantage of the US CHIPS Act and the US-led Indo-Pacific Economic Framework for Prosperity (IPEF).
TI last week announced at the US-Asean Business Council (USABC) meeting with President Ferdinand Marcos Jr. it was looking at investing up to $1 billion for the expansion of its operations in PEZA-managed ecozones in Clark and Baguio City.
Panga quoted Ted Osius, president and chief executive officer of USABC as saying American companies are now open to making more investments in the Philippines due to the country’s “transparent predictable business environment” in accordance with the IPEF.
Panga said the former US ambassador particularly lauded the country’s leadership in implementing Pillar 3 of the IPEF on the use of clean energy, decarbonization, and infrastructure and as well as its compliance to the initiative’s Pillar 4 on tax and anti-corruption measures.
Panga said TI- Philippines benefitted from its mother company’s $30 billion 300-millimeter semiconductor wafer fabrication plants in Sherman, Texas with the onshoring policy of the US government under the US CHIPS Act of 2022.
Panga said in providing critical support to TI global headquarters particularly in addressing the worldwide semiconductor shortage, TI Philippines has to step up on its production of chips alongside other TI manufacturing plants in the region.
“This is where the Philippines can leverage on the friendshoring policy of the US and through its active participation in the IPEF,” Panga said.
