PH Aims for Increased Role in Global Semiconductor Market

Manila: The government is targeting a bigger share of the global semiconductor industry, aiming to attract more investments and create higher-paying jobs for Filipinos through a new industry roadmap. The Philippine Semiconductor and Electronics Industry Roadmap seeks to move the country beyond its traditional role in assembly and manufacturing and into higher-value activities, such as chip design, engineering, research, and innovation, Executive Secretary Ralph Recto said at the roadmap's launch on Wednesday.

According to Philippines News Agency, Recto emphasized the country's ambitions in a news release on Thursday, stating, "Ang target natin, hindi lang makita ang Made in the Philippines sa mga produkto (Our target is not just to showcase Made in the Philippines products)." He further emphasized, "Gusto natin (What we want): Designed in the Philippines. Engineered in the Philippines. Innovated in the Philippines."

The roadmap aims for USD110 billion in annual semiconductor and electronics exports by 2030, with the government seeking to increase the Philippines' share of global semiconductor assembly, test, and packaging from 4 percent to 7 percent. It also seeks to capture 4 percent of the global electronics manufacturing services market and develop an integrated circuit (IC) design sector generating USD2 billion to USD3 billion in annual exports.

For Filipino workers, Recto said the expansion means more opportunities not only in factories but also in engineering, research, design, and other highly skilled fields. The semiconductor and electronics industry already accounts for more than 60 percent of Philippine merchandise exports, generating more than USD45 billion annually, making it one of the country's most important economic sectors.

Recto highlighted that the industry will also be a major driver of the Luzon Economic Corridor, helping strengthen the country's position in global technology and supply chains. He stated, "Whether we act or not, this industry will continue to expand. And we must grow with it. That is the direction President (Ferdinand) Marcos Jr. has set for us."

As chairperson of the Semiconductor and Electronics Industry Advisory Council (SEIAC), Recto indicated that the government will focus on removing barriers that could discourage companies from investing or expanding in the Philippines. These include shortages of engineers and skilled workers, inadequate power, water and logistics infrastructure, lengthy permit processes, and regulatory bottlenecks.

The roadmap includes measures to develop the talent needed by the industry and move the country up the value chain, from advanced packaging and IC design toward more sophisticated semiconductor activities. Earlier plans also include establishing specialized national laboratories to support research, fabrication, and workforce development.

Recto noted that the roadmap must translate into actual investments, jobs, and industry growth rather than remain a government document. "A roadmap is only as good as its execution. We have enough good plans in government. What the industry needs from us now are results," he said. "As chairperson of SEIAC, you can be assured that our office will not only chair the launch of this Roadmap, but will stay on top of its actual implementation."