The Philippines’ quest for more investment in semiconductor-related industries has gained full support from the leading industry association in the USA, the Special Assistant to the President for Investment and Economic Affairs said.
The Semiconductor Industry Association (SIA) is onboard in this quest of making the Philippines a priority destination for investments in semiconductors, Secretary Frederick Go said.
“US companies and Philippine officials are set to forge partnerships that will drive technological advancements and economic growth,” said Go, who attended a meeting with SIA officials on Monday.
Dan Lachica, president of the Semiconductor and Electronics Industries of the Philippines Inc., wants to see the meeting yield new business deals for the country, he said in a separate interview.
SIA is one of America’s top export industries and is globally invested to meet its requirements.
“SIA members support what the Philippines is doing,” Lachica told Malaya Business Insight.
The government wants to diversify beyond the traditional assembly, test and packaging (ATP) services that the country is primarily offering, GO said.
The Philippines has identified two other main priorities in the semiconductor industry: capacity building in integrated circuit design, and education and additional skills for the future workforce.
“The SIA visit aligns with our efforts to position the country as a premier investment destination in the region and the global stage,” Go said.
President Ferdinand Marcos Jr. and SIA president John Neuffer led the meeting in Malacañang.
Go discussed the opportunities presented under the US CHIPS (Creating Helpful Incentives to Produce Semiconductors and Science) Act of 2022, which includes a $500 million International Technology Security and Innovation Fund allocated to seven countries over five years.
This funding aims to promote the semiconductor supply chain security and diversification, potentially bolstering investment in manufacturing and innovation and enhancing the Philippines’ competitive edge in this industry, which Go described as critical.
The semiconductor industry is the country’s top exporter, generating nearly $50 billion in revenues in 2023, with 3 million workers.
SIA members were scheduled to hold separate meetings with Philippine economic officials.
The US delegation that met with members of the Philippine economic team included SIA director Jennifer Meng, US Ambassador to the Philippines Mary Kay Carlson, and the heads of Allegro Microsystems, Amkor Technology, Analog Devices, Microchip Technology, and OnSemi. SIA is currently making its round in Southeast Asia.
In a separate statement, Malacañang said President Marcos told SIA officials the Philippines is developing a world-class workforce in semiconductor manufacturing which played a huge part in the country’s growth for many years.
Considering the expansions in the digital space, the president predicted increased global requirements which the Philippines could seize in terms of supply.
“We thought that this would present an opportunity for the Philippines to expand, but not only in terms of production, or fabrication of chips, but we decided that it’s time for us to move up the value chain and start looking into designing as well,” the president told Neuffer.
“And this came at a very opportune time because there are very many new technologies that have to be understood and then applied and then scaled up to a manufacturing level so that it becomes [a] significant contributor to GDP (gross domestic product),” he said.
Semiconductor manufacturing in the country is a “very, very fertile area for development” because it’s still a small part of the actual global supply chain, compared to industry giants Taiwan and China, he said.
The government wants to seize the opportunity by coming up with a more detailed roadmap to make the country more competitive, he added.
