Albay 2nd district Rep. Joey Salceda believes that Congress can help the Philippines become more competitive in the global semiconductor industry.
Salceda had this to say following his participation in the Indo-Pacific Business Forum last Jan. 12. The Bicolano was the sole Filipino legislator on the VIP panel of the internationally-streamed event.
Salceda said during forum that the Philippines stands to benefit from the United States Creating Helpful Incentives to Produce Semiconductors or CHIPS Act, and from fostering closer ties with Taiwan, as multinational semiconductors companies try to diversify their supply chains.
The House Committee on Ways and Means went on to enumerate the actions Philippine legislators are taking to help boost the country’s competitiveness in semiconductor manufacturing. The panel discussion was streamed to counterparts in Tokyo, Japan.
“We are trying to solve the issue of input VAT (value-added tax) for indirect exporters, since this will be among the biggest compliance and friction costs. We are also exploring ringfencing for excised industries and for reexporters, so that we can be looser with input VAT enforcement with semicons," he said.
“My committee is also instructing DTI (Department of Trade and Industry) to create the comprehensive list of SIPP (Strategic Investment Priority Plan)-eligible industries under CREATE Law. We are also recommending the guidelines for the super-incentives package under CREATE," Salceda said.
CREATE stands for Corporate Recovery and Tax Incentives for Enterprises.
“Of course, we are also trying hard to address power costs and ease of doing business," added the economist-solon.
“We are also trying to fund or support international airports near five ecozones–CEZA (Cagayan Economic Zone Authority), John Hay, Poro Point, Subic, and Clark,” Salceda added.
But as it is, Salceda says the Philippines "has the following going for it".
"Geostrategic location, because among Indo-Pacific countries, we are the closest to Taiwan, which makes 90% of advanced chips. Some 1.25 million Filipinos are eligible for the Taiwan Overseas Compatriot Identity Certificate, and some 250,000 OFWs (overseas Filipino workers) are in Taiwan already working in semiconductor businesses.
“Our workforce is highly trainable, Western-predisposed workforce with high educational attainment – good for product testing, assembly, packaging, and research and development in chips," he further said.