The Philippine Economic Zone Authority (PEZA) welcomed US Secretary of State Antony Blinken’s recognition of the Philippines as a critical partner in the US global semiconductor supply chain efforts.
PEZA director-general Tereso Panga said the agency is proud to host US electronic manufacturing services (EMS) and semiconductor manufacturing services (SMS) investments and expects to further expand business collaboration with the US.
Blinken’s visit to Amkor Technology Philippines (ATP), a PEZA-registered leader in the overall satisfaction (OSAT) of industries, highlighted the existing US presence in the Philippine semiconductor sector.
Blinken underscored the importance of the Philippines as a partner and reiterated commitments made by the US delegation for further collaboration.
He also acknowledged the Philippines’ significant contribution to the global market share in assembly testing and packaging, representing a substantial portion of the Philippine economy.
Blinked cited the need to reduce dependencies and strengthen global supply chains, highlighting potential through the US-Philippines partnership.
He also explained the US support through the International Technology Security and Innovation (ITSI) fund, aiming to build partner countries’ capacity in workforce development, specifically for the semiconductor industry.
Blinken also mentioned a planned $1-billion investment in the Filipino tech sector and doubling semiconductor factories.
Panga assured continued support for the semiconductor industry, a top priority for PEZA, and expressed confidence in benefiting from the CHIPS Act once barriers are addressed.
Panga said the partnership is a stepping stone to attract larger players like Taiwan Semiconductor Manufacturing Company Ltd. (TSMC), diversifying and elevating the Philippines’ footprint in the industry.
He highlighted the advantages of PEZA ecozones for investors and the positive feedback PEZA has received from the US Department of State and Trade Administration.
Several US companies expressed interest in the Philippines, alongside prospects from other countries. As of December 2023, PEZA houses 478 EMS-SMS companies, attracting significant investments, exports and job creation.