The Philippine Economic Zone Authority (PEZA) wants its locators to take advantage of the newly passed CHIPS Act and the Indo-Pacific Economic Framework in keeping with the US goal of diversifying their chip supply chain.
“This partnership can strategically de-risk and diversify global value chains, positioning the Philippines as your +1 in Asia. With the Philippines as your ideal hub in the region, the ASEAN and Asia-Pacific could serve as your manufacturing and distribution gateway,” PEZA director-general Tereso Panga told the members of the Presidential Trade and Investment Mission.
US Department of Commerce Secretary Gina Raimondo said the US may extend assistance to help double the Philippines’ chip manufacturing facilities and capacities to spread and lessen the risks.
“US companies have realized our chip supply chain is way too concentrated in just a few countries in just a few countries in the world… You know the old adage, ‘Don’t put your eggs in one basket’. Why do we allow ourselves to be buying so many of our chips from one or two countries? That’s why we need to diversify,” Raimondo said in a fireside chat with industry leaders in the Philippines.
Panga said PEZA is optimistic on the flourishing partnerships with American investors in various sectors most especially in the electronics and semiconductor manufacturing services.
“This collaboration is expected to enhance our nation’s capabilities in assembly, packaging, and testing, and propel us into sophisticated integrated circuit design and, eventually, wafer fabrication,” he said.
PEZA is also eyeing possible investments from leading American companies with stakes in regenerative agriculture, alternative and renewable energy, e-mobility, green ores processing, drug and medical equipment manufacturing, tourism, agriculture and digital and frontier technology.
The Philippines is also extending the invitation to other countries to look at the Philippines for their business and investment ventures.
“Other countries should not see the US Trade Mission as a threat, but rather see it in a positive light as it strengthens the resiliency of general trade in the region,” said Panga.
The US remains the top export destination of the Philippines based on the latest PSA report.