U.S. semiconductor companies are actively exploring investment opportunities in the Philippines, as highlighted by Secretary Frederick D. Go, who leads the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA). Go emphasized that the semiconductor industry is a priority for investment in the country [f182eca9]. This initiative comes in the wake of a meeting between President Ferdinand R. Marcos, Jr. and representatives from U.S. semiconductor firms, including John Neuffer, President and CEO of the Semiconductor Industry Association [f182eca9].
Key companies involved in these discussions include Allegro Microsystems, Amkor Technology, Analog Devices, Microchip Technology, and OnSemi. The Philippines has a robust semiconductor export sector, generating $50 billion in 2023 and supporting approximately 3 million jobs [f182eca9]. This potential partnership aligns with the U.S. CHIPS and Science Act, which allocates a $500 million fund aimed at enhancing semiconductor supply chain security [f182eca9].
In a related development, on December 20, 2024, the Semiconductor Industry Association (SIA) praised the finalization of CHIPS Act incentives by the U.S. Department of Commerce to support Texas Instruments' (TI) semiconductor manufacturing facilities in Texas and Utah. These incentives are expected to create thousands of jobs and enhance U.S. economic strength and supply chain resilience [66f7f06b]. Since the introduction of the CHIPS Act, 90 new projects across 28 states have been announced, totaling hundreds of billions in investments and creating over 58,000 jobs [66f7f06b].
The Semiconductor and Electronics Industries in the Philippines Foundation has projected that exports will remain flat in 2025, indicating a need for new investments to stimulate growth in the sector [f182eca9]. As U.S. companies consider expanding their operations in the Philippines, the collaboration could lead to significant advancements in technology and job creation in the region, further strengthening the semiconductor supply chain amidst global competition [f182eca9].
The combined efforts of both domestic and international investments are crucial for the U.S. to maintain its competitive edge in the semiconductor industry, especially given the geopolitical tensions and supply chain vulnerabilities that have emerged in recent years [113bb9a9]. A May report projected a 203% increase in U.S. semiconductor manufacturing capacity from 2022 to 2032, capturing 28% of global capital expenditures during 2024-2032 [66f7f06b].