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The United States has chosen the Philippines as one of the recipients of its massive funding initiative to expand international semiconductor supply chains for the US market, said a State Department official on Tuesday, Jan. 30.
US Undersecretary for Economic Growth, Energy, and the Environment Jose Fernandez told reporters that the country is one of seven other states such as Panama, Mexico, Vietnam, and Costa Rica who were selected by the State Department to get financial aid under the Biden administration’s CHIPS and Science Act.
As explained by Fernandez, 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 five years to diversify the US’ international supply chains.
“We will soon receive recommendations from the OECD (Organization for Economic Cooperation and Development) in Paris in how we can strengthen the semiconductor ecosystem in the Philippines, and I talked about how we need to start implementing those recommendations as soon as we get them. We’re going to do that with a sense of expectation that, to the credit of Filipino technology, ingenuity, workers, when we get those recommendations, the Philippines can continue to be a leader and actually expand its semiconductor industry which right now is thriving,” said Fernandez.
The semiconductor industry in the Philippines has managed to yield 2.5 million indirect and direct jobs. 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.
He noted that US companies have great interest in working in the Philippines, especially in the assembly, testing, and packaging chains for semiconductors. They are also looking for a manpower pool that has many qualified workers, which the Philippines has a competitive advantage, said the undersecretary.
Moreover, Fernandez said many local companies in the Philippines have also expressed eagerness to venture beyond assembly, testing, and packaging in the sector.
During his two-day visit to the Philippines, Fernandez has met with several semiconductor and mining companies, and government agencies like the Department of Trade and Industry (DTI), Department of Energy (DOE), Department of Foreign Affairs (DFA), and the Department of Finance (DOF) to discuss ways to expand supply chain resilience.
Aside from semiconductors, he highlighted clean energy and critical minerals as key areas for bilateral economic development.
Given that the Philippines has rich nickel, copper, and cobalt reserves that can be utilized for investments, Fernandez said they are facilitating engagement opportunities between the Philippine government and mining companies such as video conference activities to establish mutual connections under the international Mineral Security Partnership (MSP), which ensures that mining activities align with sustainable or climate productive goals.
The US is also helping the country create an “enabling, regulatory environment” that adheres to standards for responsible investments.
Fernandez emphasized that the Philippines and the US’ economic ties remain strong, and he is optimistic of developing deeper partnerships with the country moving forward. — Khrischielle Yalao
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Credit belongs to: www.mb.com.ph
