MANILA — The Philippines is seeking to draw more investment into chip design, engineering, and research as a surge in electronics exports strengthens its position in global technology supply chains, Executive Secretary Ralph G. Recto said.

The government wants to move the industry beyond assembly and manufacturing into higher-value activities as demand for semiconductors and data-center infrastructure expands, said Mr. Recto, who chairs the Semiconductor and Electronics Industry Advisory Council, in a statement on Sunday.

“Investors now see that we are an investment choice not only for manufacturing and assembly, but also for chip design, engineering, research, and innovation,” Mr. Recto said. “As demand for AI (artificial intelligence), semiconductors, and data centers grows, opportunities are also expanding for our workers, engineers, and businesses,” he added.

The distinction matters because the semiconductor value chain typically splits into front-end design, where chip architectures are drawn up, and back-end assembly, testing, and packaging — the work that currently anchors the Philippine industry. Moving into design would place the country in the higher-value segment that governments across Southeast Asia have been competing to attract as global chip demand expands.

Record Export Run

Philippine merchandise exports hit a record $64.04 billion in the first eight months of the year, up 14.8% from a year earlier, according to the Philippine Statistics Authority (PSA). Electronic products accounted for $37.1 billion of the total, growing 26.2% year on year.

August exports reached $9.11 billion, the highest since the PSA began tracking the monthly indicator in 1991. Electronic products made up $6.2 billion, or 68.1% of the total — a concentration that makes the sector's performance a decisive factor in the country's overall trade picture.

The Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) has raised its 2026 electronics export growth forecast to 10%, which, if achieved, would bring the total to about $54 billion.

Roadmap Targets

Mr. Recto said the government's roadmap contemplates semiconductor and electronics exports of $110 billion by 2030. Targets include raising the country's share of global semiconductor assembly, testing, and packaging from 4% to 7%, and developing an integrated circuit design industry generating $2 billion to $3 billion in exports each year.

Reaching the 2030 goal would require nearly doubling shipments from SEIPI's projected 2026 level of about $54 billion, while the design target would build an export stream distinct from the back-end work that dominates the industry today.

He also cited Toshiba Corp.'s planned expansion of its Philippine operations over the next three years, expected to create about 3,000 jobs, as an example of investment in technology-related manufacturing.

The US remained the top export market with $12.3 billion in orders, Mr. Recto said, with SEIPI attributing the strength of order growth to the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act.

He added that the government aims to capture 4% of global electronics manufacturing services while developing the Luzon Economic Corridor and a broader Philippine Technology Corridor to host advanced manufacturing hubs.

Near-term markers for the roadmap include the pace of corridor development, Toshiba's three-year expansion timetable, and whether SEIPI's upgraded 10% forecast for 2026 holds — each feeding into the larger 2030 targets.

Source: BusinessWorld