Investments from 13 countries and the European Union are expected to flood the country’s semiconductors and critical mineral industry, as vowed by the United States during US officials' recent meeting with the Board of Investments last week.

In his meeting with BoI managing head Trade Undersecretary Ceferino Rodolfo, United States Department of State Under Secretary for Economic Growth, Energy, and the Environment Jose Fernandez acknowledged the Philippines’ significant growth in semiconductors and critical minerals industries, highlighting its well-educated and highly trainable workforce.

He also committed to providing the Philippines an audience with the Minerals Security Partnership, a collaboration of 13 countries and the EU, which aims to catalyze public and private investment in responsible critical minerals supply chains globally.

As both countries work together to engage other nations to do mineral refining in the Philippines, the US is ready to assist in technical processes as the Philippines prepares a work plan on critical minerals.

The US shared that the Philippines is among the six countries it will be supporting under the CHIPS Act.

Recognizing the potential of the country's semiconductor industry supplemented by its talent pool, the assistance will be focused mainly on assembly, testing and packaging. The US also announced that its US International Development Finance Corporation will establish a more permanent presence in the Philippines by February.

For his part, Rodolfo said they welcome the strategic collaboration with the US in semiconductors and critical minerals.

“This partnership not only reinforces the Philippines' position as a key player in the global economy but also opens avenues for mutual growth and innovation. Together, we are charting a course toward sustainable development and economic resilience," according to Rodolfo.

Lab-scale wafer fabrication plant

Meanwhile, Rodolfo said the Philippines shared its plans to venture into semiconductor design.

He said the BoI is looking into the establishment of a lab-scale wafer fabrication plant.

Rodolfo told Fernandez that utilizing a more generic technology for commercial and educational purposes, the wafer fab lab aims to train and upskill the workforce while enabling the local industry to do prototyping and some tape-outs of semiconductor chip designs in the country instead of bringing them to Taiwan.

He disclosed that the BoI is already finalizing its goal to produce 128 thousand semiconductor-related engineers and technicians by 2028 to support the development of the country's semiconductor industry.

Noting that the Philippines regularly participates in the OECD Southeast Asia Regional Program, the US invited the country to join the OECD Semiconductor Informal Exchange Network.

The US emphasized its goal of implementation rather than the discussion of policy ideas.

The meeting on 30 January 2024 was attended by key officials from the Departments of Trade and Industry, Foreign Affairs, Energy, Environment and Natural Resources, Science and Technology and the National Security Council.