The Board of Investments (BOI) said it is planning to explore semiconductor design through the construction of a wafer fabrication plant to boost the country's domestic semiconductor industry, which is largely limited to assembly, testing and packaging operations and is import dependent, to enhance export potential and strengthen its presence in the global supply chain.
In a statement, the agency said that it is planning to create a lab-scale wafer fabrication plant, which will allow manufacturers to locally produce prototypes or tape outs of various semiconductor chip designs instead of going to Taiwan.
The BOI announcement came after the pronouncement last Jan. 30 by US Undersecretary Jose Fernandez for Economic Growth, Energy, and the Environment that the Philippines is one of seven other states such as Panama, Mexico, Vietnam, and Costa Rica selected by the State Department to get financial aid under the Biden administration's CHIPS and Science Act.
The BOI statement did not mention any figure for the planned wafer fab plant, but Fernandez said that the CHIPS Act allocates roughly $52 billion to expand the US' semiconductor supply chains. Facilitated by the State Department, $500 million of this fund will be divided among the beneficiary countries over a five year period.
The massive funding initiative aims at expanding America's international semiconductor supply chains for the US market.
At present, the Philippines' semiconductor industry focuses mostly on assembly, testing, and packaging of semiconductors.
In order to level up the industry's semiconductor capacity, the agency via the plant will also train and upskill the semiconductor workforce.
By 2028, the BOI is aiming to product 128,000 semiconductor-related engineers and technicians to support growth in the industry.
During the visit, Fernandez also met BOI Managing Head Ceferino S. Rodolfo where the US government official mentioned that the local semiconductor industry is among six countries that may receive funding under the CHIPS and Science Act.
The CHIPS Act will support the current specialties of the Philippine semiconductor sector.
In addition, the country has received an invitation from the US to join the Organization for Economic Cooperation and Development (OECD) Semiconductor Informal Exchange Network, alongside its active participation in the OECD Southeast Asia Regional Program.
The semiconductor industry in the Philippines continues to be a thriving sector and big source of investments.
According to a 2023 data from the Philippine Economic Zone Authority (PEZA), 34.38 percent of locator investments came from the electronics or semiconductors sector, resulting in creation of 2.5 million indirect and direct jobs.
Aside from semiconductors, Fernandez also highlighted the US' commitment to help the Philippines' critical minerals industry through the Minerals Security Partnership (MSP) to help the country garner investments in the responsible mining sector. Technical assistance will also be given once the Philippines has a feasible work plan for the sector.
For his part, Rodolfo said, "We welcome this strategic collaboration with the United States 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."