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Us Chip Supply Chain Targets Philippines Expansion?

Author:Flora Date:2024-03-13

In recent years, affected by the complex international situation and the maintenance of supply chain security and other factors, Southeast Asian countries represented by Singapore, Malaysia, Vietnam and so on have become the first choice for the overseas layout of many semiconductor manufacturers. Now, the Philippines may join that camp.


Recently, US Commerce Secretary Gina Raimondo said she wanted to help the Philippines double its semiconductor facilities to reduce the geographic concentration of the global chip supply chain. Earlier, Raimondo announced that U.S. companies would invest more than $1 billion in the Philippines.


According to the data, the semiconductor and electronics industries are the best performing industries among Philippine exports, accounting for about 60% of the total merchandise exports.


The semiconductor industry in the Philippines mainly focuses on the field of packaging and testing. With a young workforce with high literacy and English proficiency, the Philippines has become an important packaging and testing base for international semiconductor manufacturers such as Amkor, Intel, ADI, and TI.


In terms of regional distribution, industry introduction, the Philippines semiconductor industry is concentrated in Metro Manila, Calabaszon, Northern/Central Luzon and Cebu four regions, of which Metro Manila is the main, gathered Amkor, ON Semiconductor and other international well-known enterprises, as well as Toshiba hard disk assembly plant.




However, the Philippines is not "satisfied" with a single field, and in February media reported that the Philippine Board of Investment (BOI) will cooperate with the United States to expand its semiconductor capabilities, including the construction of its first wafer fab.


BOI hopes to build a lab-scale fab. The fab will provide common manufacturing process technology in order to encourage local fabless startups and train semiconductor engineers.

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