Atin Ito First Filipino Community Newspaper in Ontario
US Secretary of Commerce Gina Raimondo expressed her desire to double the current 13 semiconductor facilities in the Philippines to boost competitiveness and become a critical component of the global semiconductor supply chain.
In a meeting with US and local business leaders on the last day of the Presidential Trade Mission here on March 12, Raimondo said that the US sees opportunities in the Philippines for American companies to actualize the need to diversify their chip supply chain since it is too concentrated in just a few countries in the world.
“The Philippines already has 13 semiconductor assembly, testing, and packaging facilities. Let’s double it. It’s a moment now of growth. Your country is mineral rich, has the talent and the expertise,” she said. .
She emphasized that critical minerals is “more important than ever,” with US companies thinking about how to make their companies more resilient, and how to set up operations in the country.
The country is one of seven potential beneficiaries of US funding under the CHIPS and Science Act, which allots $52 billion to expand the US’ international semiconductor supply chains.
President Ferdinand Marcos Jr. has stated, during the Trade Mission’s courtesy call at Malacanang on March 11, that the support could yield 128,000 semiconductor engineer and technician jobs for Filipinos by 2028.
American Chamber of Commerce (AMCHAM) of the Philippines, Inc. Executive Director Ebb Hinchliffe told reporters that US firm Texas Instruments Philippines is expanding both facilities in Clark, Pampanga; and Baguio.
“I think most in the semiconductor industry sees the CHIPS Act has been a big help by the Biden administration. For the CHIPS Act, now, I think they’re looking at Taiwan + 1. Nobody’s pulling out of Taiwan. We’re expanding in Taiwan as well, but there’s a need for chip manufacturing in several countries more than two. The Philippines offers that opportunity,” said Hinchliffe.
The Philippines can be an attractive destination for these investments, particularly on wafer production, when it overcomes costs of energy, and delivers consistent power, he added.
Meanwhile, US-ASEAN Business Council President and Chief Executive Officer (CEO) Ted Osius told reporters that some of US companies’ interests lie in addressing supply chain problems. The global supply chain exposed its fragility during the Covid-19 pandemic, the tensions in the Red Sea, and geopolitical issues with China.
The 175-member council, which serves as a bridge to help US firms link with businesses in the region, sees the follow as priority areas for US investments: information and communication technology (ICT), technology, digital economy, renewable energy (RE), and healthcare.
Hinchliffe said that some of the investments have been signed, while sectors that have indicated intent were in RE, critical minerals, and IT.
As the Trade Mission closes, Raimondo advised Filipino and US business leaders alike to focus on trust and opportunity to nurture their relations.
“There is long standing trust, built upon shared values. There’s a moment now. Seize the moment now,” she said.
Department of Trade and Industry (DTI) Undersecretary Ceferino Rodolfo expressed his gratitude towards Raimondo for her “steadfast commitment to the strengthening of PH-US economic relations, including for personally leading the US’ first-ever Presidential Trade and Investment Mission to the Philippines—from its very inception to the actual conduct of the Mission.”
“In addition, there are specific market access issues where Secretary Fred Pascual sought her support. While these are not directly within the purview of the Department of Commerce, we are deeply thankful for the personal commitment of Secretary Raimondo to closely collaborate with us in finding a clear way-forward to address the issues. Truly, this demonstrates a whole of United States approach in deepening our Strategic Partnership and Alliance across all fronts,” he added. — Khrischielle Yalao
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