US eyeing to boost Philippines chip output

MANILA, Philippines — The US has committed to help double the number of semiconductor facilities in the Philippines as part of efforts to diversify its chip supply chain.

US Secretary of Commerce Gina Raimondo said the US is looking to diversify its chip supply chain, which provides an opportunity for the Philippines’ semiconductor industry.

“I think there’s a moment right now in the (semiconductor) supply chain for your country,” Raimondo said during the joint general membership meeting of business groups American Chamber of Commerce of the Philippines, Makati Business Club, US-ASEAN Business Council and the Management Association of the Philippines yesterday.

Raimondo is leading the US presidential trade and investment mission to the Philippines aimed at strengthening ties between the two countries.

She said US companies have realized their chip supply chain is too concentrated in just a few countries.

“Why do we allow ourselves to be buying so many of our chips from one or two countries? That’s why we need to diversify. And that moment is now. And that’s the opportunity for the Philippines,” she added.

According to Raimondo, the Philippines has 13 semiconductor assembly, testing and packaging facilities.

“Let’s double it,” she said, noting the Philippines has the talent and expertise.

As companies are thinking about how to make their supply chain more resilient, she said these firms are looking for countries where they can set up operations.

“I believe you are at the top of the list,” Raimondo said.

The semiconductor and electronics industry accounts for the Philippines’ top merchandise export.

Latest data from the Philippine Statistics Authority showed electronic products accounted for 58.2 percent of the country’s total exports in January this year.

Trade undersecretary Ceferino Rodolfo told reporters that doubling the country’s semiconductor facilities is doable with US support in terms of funding.

Earlier, President Marcos said the potential support from the US under the CHIPS Act would help the country churn out a talent pool of 128,000 semiconductor engineers and technicians by 2028 to meet the expanding needs of high technology industries.

The CHIPS and Science Act authorizes the US to provide funding for American semiconductor research, development, manufacturing and workforce development.

“But more than the funds, it’s the access to the technical expertise that is important,” Rodolfo said.

On trade issues raised by the Philippine government in the meeting with Raimondo such as the detained apparel exports and shrimp paste shipments, Rodolfo said the Department of Trade and Industry is deeply thankful for the personal commitment of the US Secretary of Commerce to closely collaborate with the agency in finding a clear way-forward to address the issues.