THE GOVERNMENT needs to ensure that Philippine semiconductor manufacturers can handle the expected growth in global chip demand, according to a Senate think tank.
“Philippine export performance will likely benefit from this anticipated expansion (of world semiconductor trade), underscoring a need to ensure that domestic manufacturers are prepared to increase capacity and meet additional demand,” the Senate Economic Planning Office said in a policy brief.
According to the World Semiconductor Trade Statistics report, demand growth for chips is projected at 12.5% next year.
It also cited 2025 estimates from the World Trade Organization, which forecast world merchandise trade growth to accelerate to 3.3% as consumption picks up.
“Nevertheless, opportunities remain which the government could leverage for better trade outcomes,” the think tank said.
The Philippine Statistics Authority said that in June, semiconductor exports fell 29.5% to $2.32 billion.
Washington is looking to invest in the Philippine chip industry and possibly doubling the number of existing packaging, testing, and assembly facilities, US Commerce Secretary Gina M. Raimondo said in her visit to Manila in March.
The Philippines has 13 semiconductor assembly, testing, and packaging facilities.
The Philippines is one of seven countries that the US is partnering with to diversify its semiconductor supply chain under the CHIPS and Science Act.
Under the law, the US will provide $52.7 billion in federal subsidies to support chip manufacturing and persuade chipmakers with operations in China to relocate to the US or to friendly countries. — John Victor D. Ordonez
