The Philippine semiconductor industry is cautiously optimistic following signs that the United States may soon resume funding critical programs under the CHIPS Act and the International Technology Security and Innovation (ITSI) Fund.
Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI) president Dan Lachica, speaking on the sidelines of the Industrial Summit organized by Aboitiz InfraCapital on April 25, 2026, said the sector is still recovering from back-to-back contractions, an 8-percent decline in 2023 and a 6-percent drop in 2024, leaving growth projections relatively flat for now.
“We’re treading carefully. Even if contracts are signed today, it takes a year or two before investments translate into production,” he said.
Lachica said, however, that renewed investments would be vital to fueling growth, generating jobs and strengthening the local supply chain over time.
The Philippines is among six countries selected to benefit from the ITSI fund, which is linked to the $52.7 billion CHIPS Act.
The $500-million ITSI allocation is meant to bolster assembly, testing and packaging (ATP) capabilities outside the US, with Filipino workers among the beneficiaries.
The momentum, however, hit a snag when the ITSI fund was frozen since early 2025, when the US called for a temporary halt of overall foreign assistance initiatives, pausing workforce training programs and ATP projects.
Lachica, who previously led USAID’s Accelerating Microenterprises Development (AMDEV) skills development initiative before it was also halted, described the funding freeze as “a mistake.”
He said he recently received information that the ITSI fund would soon be unfrozen, potentially within the year. This would also pave the way for renewed collaboration with Arizona State University on workforce training workshops.
He tempered expectations, noting that global headwinds, including tariff challenges and capacity issues at new high-tech fabs in the US, could affect the timeline.
