US chipmakers exploring PHL investments, Go says

THE Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) said US semiconductor companies are exploring possible local partnerships and were briefed on the government’s plans to transform the Philippine semiconductor industry into an investment destination.

“Our government has identified the semiconductor industry as the priority sector for investment. This reflects its vital role in driving economic growth, technological innovation, and job creation,” Secretary Frederick D. Go, who heads OSAPIEA, said in a statement.

OSAPIEA said President Ferdinand R. Marcos, Jr. recently met with representatives of the US semiconductor industry, including Semiconductor Industry Association President John Neuffer.

“The visit aligns with our efforts to position the country as a premier investment destination in the region and the global stage,” Mr. Go added.

Among the companies in the delegation were Allegro Microsystems, Amkor Technology, Analog Devices, Microchip Technology, and OnSemi.

“Both sides are optimistic about forging partnerships that will drive technological advancements and economic growth,” OSAPIEA said.

In 2023, the Philippines generated about $50 billion in exports, with the industry supporting about 3 million direct and indirect jobs, according to OSAPIEA.

OSAPIEA said the government is encouraged by opportunities under the US CHIPS and Science Act, which features a $500-million International Technology Security and Innovation Fund to be allocated to seven countries over five years, as the US moves to de-risk its technology supply chains.

“This funding aims to promote semiconductor supply chain security and diversification, potentially bolstering investments in manufacturing and innovation and enhancing the Philippines’ competitive edge in this critical industry,” OSAPIEA added.

“The engagement signifies a strategic move towards solidifying the Philippines’ role in the global semiconductor supply chain while fostering local talent and infrastructure development,” it added.

The Semiconductor and Electronics Industries in the Philippines Foundation, Inc. has said that exports of semiconductor and electronic products are likely to be flat in 2025. — Adrian H. Halili