The Philippine semiconductor industry is pinning its hope on the government to secure a favorable deal with the United States (US) with the looming announcement of tariffs against foreign-made semiconductors, which could be as high as 300 percent.

Philippine Chamber of Commerce and Industry (PCCI) executive vice president Ferdinand Ferrer said the industry is closely monitoring developments on the tariffs after US President Donald Trump said that taxes on chips would be announced in the coming weeks.

Apart from his role at the influential PCCI, Ferrer is the chairman and CEO of EMS Group of Companies, a manufacturer whose products include semiconductors.

Earlier this month, Trump announced that he will impose 100 percent tariffs on semiconductor imports, with exceptions for companies that are manufacturing in the US or those that have committed to doing so.

Last week, Trump said the tariff rates would start low to allow companies to build up their manufacturing capacity in America.

Afterwards, he said this would rise to a high level, potentially reaching 200 percent and even 300 percent.

Ferrer said his company, and the industry as a whole, will be observing developments with neighboring countries as to what would be their tariffs on semiconductors.

“So I think it will still be ongoing in the next few months. So let's just wait and see,” Ferrer told reporters on the sidelines of a PCCI event on Monday, Aug. 18.

“Our government officials are hard at work trying to get a favorable deal for the country,” he added.

Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go said last week that the government will negotiate with the Trump administration to seek an exemption for the country.

Go said he is hoping that the US will view the local industry’s focus on assembly, testing, and packaging of semiconductors as something that it “may not really want to do.”

When asked about a development on this matter, Trade Secretary Cristina Roque said on Monday that talks are still ongoing between the Philippines and the US.

“So our response to that is really to just continue the negotiations. So now it's still ongoing,” she said.

Ferrer said the government should leverage the country’s critical role in the supply chain of semiconductors to get the best deal possible.

“We're trying to work together to get a more favorable position when it comes to the tariffs on semiconductors,” he added.

While talks are ongoing, Ferrer said the semiconductor industry is looking at untapped markets to cushion the potential impact of tariffs.

He also said that the industry is being more proactive by scaling up the skills of workers and aspiring workers from vocational programs to meet future demand.

Despite the tariffs, he said there are more companies who are looking to enter the country’s semiconductor sector “especially now that you see a lot of regionalization.”