US semiconductor firms are taking extreme interest in opportunities in the country amid the vastly improved business atmosphere.

President Ferdinand R. Marcos Jr. met yesterday with key stakeholders in the US semiconductor industry, including Semiconductor Industry Association (SIA) president John Neuffer.

It was discussed in the meeting that further steps to be taken to move potential business prospects forward were discussed in a separate meeting with high-ranking economic officials.

Special Assistant to the President for Investment and Economic Affairs Frederick Go underlined the government’s commitment to the sector, stating, “Our government has identified the semiconductor industry as a priority for investment. This reflects its vital role in driving economic growth, technological innovation and job creation. It also mirrored vital signs in our efforts to position the country as a premier investment destination.”

The government and the semiconductor industry agreed that the three priorities are expanding the assembly, testing and packaging (ATP) sector, capacity building on IC design, and the proper education and upskilling of the future workforce for the industry.

Economic cog

The semiconductor industry has proven to be a major driver of the economy.

In 2023, it emerged as the country’s top export sector, generating close to $50 billion in exports and supporting approximately 3 million direct and indirect jobs.

These figures underscore the sector’s importance not only in terms of revenue but also in providing employment opportunities for Filipinos.

The government is particularly encouraged by the opportunities presented under the CHIPS Act that includes a $500-million International Technology Security and Innovation (ITSI) fund for seven nations over five years.

The funding aims to promote supply chain security and diversification, potentially bolstering investments in manufacturing and innovation and enhancing the competitive edge in the critical industry.

The US delegation that met with the economic team included SIA Director Jennifer Meng, US Ambassador to the Philippines MaryKay Carlson, and the heads of Allegro Microsystems, Amkor Technology, Analog Devices, Microchip Technology and OnSemi.

SIA is currently touring around Southeast Asia to learn the semiconductor ecosystem in each country.

Trade and Industry Secretary Ma. Cristina Roque joined SAPIEA Go in representing the Philippines in the talks.

The engagement signifies a strategic move towards solidifying the country’s role in the global semiconductor supply chain while fostering local talent and infrastructure development.