United States Department of State Undersecretary for Economic Growth, Energy and the Environment Jose W. Fernandez has revealed that the Philippines is one of several countries that have been identified as a beneficiary of financial assistance under the US government’s CHIPS and Science Act, particularly in terms of expanding the global semiconductor supply chain for the U.S. market.
Fernandez spoke with reporters in an online dialogue at the end of his 10-day trip to Vietnam, the Philippines and South Korea where, he said, he had “productive meetings with several government and business leaders” with whom he discussed ways to strengthen trade relations and economic partnerships.
“In the Philippines, we assured our partners of our unwavering support for Philippine economic resilience and supply chain diversification and we also focused on expanding our already strong trade relations and investment opportunities in many areas,” Fernandez said.
While in Manila, Fernandez told reporters that the Philippines is one of at least seven other countries including Costa Rica, Mexico, Vietnam and Panama chosen by the US State Department for financial aid under the CHIPS and Science Act.
The CHIPS, or “Creating Helpful Incentives to Produce Semiconductors” and Science Act, which is a US federal statute enacted by US Congress and signed into Law by President Joe Biden on August 2022, has allocated some $52 billion to expand US semiconductor supply chains; $500 million of this allocation is intended to be divided among beneficiary countries over a half-decade for the diversification of US’ global supply chain.
Fernandez indicated that recommendations are forthcoming from the Organization for Economic Cooperation and Development in Paris as to how the Philippines’ semiconductor industry can be strengthened.
He underlined the need to start the implementation of such recommendations from the OECD. “As soon as we get them; we’re going to do that with a sense of expectation that, to the credit of Filipino technology, ingenuity, (and) workers, the Philippines can continue to be a leader and expand its semiconductor industry,” said the US official.
Also among the investment areas, Fernandez said he discussed with Philippine officials in the Philippines was on critical minerals.
“As you know, the Philippines, next to Indonesia, has the largest reserves of nickel in the world. That’s an opportunity and that also matches what we’ve been trying to do as part of the Minerals Security Partnership that I’ve been working on for a long time.”
The MSP aims to accelerate the development of diverse and sustainable critical energy minerals through working with, currently, 13 host governments plus the European Union to facilitate targeted financial and diplomatic support for strategic projects along the value chain.
MSP partners include Australia, Canada, Finland France, Germany, India, Italy, Japan, Norway, South Korea, the United Kingdom, the US and the EU.
US eyes Phl semiconductor, critical mineral investments — State Dept official.
The partnership is focused on minerals and metals supply chains relevant to clean energy technologies including lithium, cobalt, nickel, manganese, graphite, copper and rare earth elements.
“Clean energy is our future and building it will require critical minerals. We’re working to bolster supply chains to ensure a sustainable future,” Fernandez said.
During his stop in Manila, Fernandez also discussed with Philippine officials “how we could establish a close working relationship with the minerals security partnership to allow potential projects in the Philippines in not just nickel but (also) in cobalt, and copper, to receive investments and the kind of financing needed.”
Grab huge opportunity
Stressed Fernandez, “This is an opportunity; the Philippines can take a vulnerability that we all have in the supply chain and our desire for diversification in the critical minerals supply chain that can be used to the Philippines’ advantage by working to attract the kinds of investments that will bring jobs to the Philippines and will do so by respecting communities, creating employment and not having to make countries choose between economic growth and environmental degradation. That’s an opportunity that I discussed with my colleagues in several ministries in the Philippines.”
Among the Philippine officials Fernandez met during his visit to Manila were Department of Energy Secretary Raphael M. Lotilla and Finance Secretary Ralph Recto.
Recto, late Monday, stated that in his meeting with the State Department Undersecretary for Economic Growth, Energy and the Environment, Fernandez highlighted specific areas of interest for the US, particularly citing critical minerals, semiconductors and energy security.
The Finance Secretary said he expressed the Philippines’ willingness to collaborate with the US on those areas of interest.
