Philippines semicon industry to benefit from US-funded program

MANILA, Philippines —  The Philippines is among the countries selected for a $13.8-million program funded by the United States to expand and develop the workforce, as well as improve the regulatory environment to support the growth of the semiconductor industry.

In a press conference, US embassy deputy chief of mission Y. Robert Ewing said the Philippines was selected along with Costa Rica, Mexico, Panama, Indonesia and Vietnam for the program of the Arizona State University (ASU) to help enhance these countries’ semiconductor chip assembly, testing and packaging (ATP) operations.

“The program here has a goal of workforce development and reducing regulations that hinder ATP expansion,” Ewing said.

The funding program is part of the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act.

According to Ewing, ASU was awarded $13.8 million to implement the program under the International Technology Security and Innovation (ITSI) Fund worth $500 million provided under the CHIPS Act.

Jeffrey Goss, principal investigator of the ITSI program at ASU, said students could complete courses and earn credentials from ASU and other universities.

“We targeted initially in the Philippines around 6,000 students over the next two years that will enjoy completion of these programs,” Goss said.

Also part of the program is semiconductor faculty development that will initially involve a train-the-trainer program.

“And then we’ll have two in-country design clinics where we’ll work with those universities on a complete plan to integrate them into their degree programs,” Goss said.

On the policy side, he said their partners in the semiconductor industry and Boston Consulting Group will work with policymakers.

Goss said a draft of the ATP National Playbook outlining opportunities and recommendations for policy and regulation in the Philippines will be made available in December.

He said these would have “changes in policies or new policies and incentives to help the Philippines be more competitive in the region to attract investment.”

Trade Undersecretary and Board of Investments managing head Ceferino Rodolfo said the initiative represents a significant leap forward for the Philippines’ semiconductor industry, and shows in a tangible way the relationship between the US and the Philippines.

“It not only strengthens our global ties with the US, but also sets the stage for the Philippines to become a critical contributor to the global semiconductor supply chain,” Rodolfo said.

He added that this would help in the country’s goal of training 128,000 engineers and technicians for the semiconductor industry by 2028.

During her visit to the Philippines last March, US Secretary of Commerce Gina Raimondo said the US wants to help the country double its semiconductor facilities as the US is looking to diversify its chip supply chain.

Earlier, US Secretary of State Antony Blinken also said the US government wants to strengthen its longstanding partnership with the Philippines on the semiconductor industry.