U.S. Selects Philippines As CHIPS Partner Country

The United States has chosen the Philippines as a partner country under the CHIPS and Science Act, aimed at diversifying its semiconductor supply chain, according to a report published on August 9, 2022.

The Philippines will receive funding from the US government to enhance the local semiconductor industry ecosystem, making it more attractive to US investors.

Signed by US President Joe Biden, the CHIPS (Creating Helpful Incentives to Produce Semiconductors) and Science Act enables US investments in exploratory and translational research to advance innovative ideas across science and engineering fields.

Jose Fernandez, US Under Secretary for Economic Growth, Energy, and the Environment, revealed that the Philippines is among seven countries selected for partnership under the Act.

Alongside Vietnam, Panama, Puerto Rico, and Mexico, the Philippines will receive funding from the US government to enhance the local semiconductor industry ecosystem, making it more attractive to US investors.

Approximately USD 500 million from the International Technology, Security, and Innovation (ITSI) Fund will be allocated over the next five years to partner countries, aiming to catalyze private investments and workforce development, ultimately bolstering the semiconductor sector.

Recommendations from the Organization for Economic Cooperation and Development (OECD) are expected to guide US efforts in strengthening the semiconductor industry in the Philippines.

Electronics and semiconductor products constitute the Philippines' leading merchandise exports, contributing over half of the country's total export revenues and supporting up to 2.5 million direct and indirect jobs.

Fernandez highlighted that 60% of investments in the local semiconductor sector originate from US companies.

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