DTI: The Semiconductor Industry Association is bullish on pH

The Semiconductor Industry Association (SIA) is optimistic about making the Philippines a significant player in the global semiconductor industry and a major center for semiconductor assembly and test manufacturing.

SIA was recently in Manila to share investment and business prospects for the Philippines with the passing of the US Semiconductor and Science Production Beneficial Incentives Creation Act of 2022 (Chip Act) of the United States.

The consortium was led by its President and CEO, John Neufer, and its Vice President for Global Policy, Jamie Goodrich, who conducted a courtesy visit to Under Secretary of Commerce and Board of Investment (BoI) Administrator Severino Rodolfo on January 16, 2022 at BoI’s office in Makati City.

Several SIA member companies have significant investments in the Philippines including Analog Devices, Onsemi, Texas Instruments, and others.

While the Chip Act incentivizes domestic chip manufacturing in the United States, there are still several segments in the semiconductor supply chain such as assembly, testing, and packaging, that are more cost-effectively performed outside the United States.

“While the chip law aims to increase the capacity of the US semiconductor industry, we realize we can’t do all of that in the US. This is where the opportunity exists for countries like the Philippines,” Neufer said.

“The chip act encourages manufacturing in the US, but rather than redistributing all manufacturing activities, it is more about rebalancing the supply chain,” he added.

During the meeting, Rodolfo expressed his appreciation for the authority’s confidence in the country’s investment prospects.

“We, in the Philippine government, stand with the local semiconductor industry in strengthening partnerships and enhancing local semiconductor manufacturing capabilities and competencies to deepen the country’s role in the global semiconductor supply chain and be able to support U.S. companies in their endeavors under the Chip Act.”

The Philippines is expected to play a larger role with its increasing capabilities in advanced technology programs, research and development, integrated circuit design and software development.

Meanwhile, the SIA met with relevant government agencies such as the Department of Science and Technology, the National Economic and Development Authority, and the Department of Information and Communication Technology, among others.

They exchanged views on the impacts of recent US export controls, semiconductor supply chain security and resilience initiatives, as well as potential opportunities for US-Philippine semiconductor cooperation, with $500 million in financing under the Chip Act.

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