The Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI) asked the government to step up support as the country positions itself for a bigger role in the global electronics value chain.
SEIPI president Dan Lachica said in the recent Philippine Manufacturing Team forum the Philippines continues to perform well, with about $4.5 billion worth of integrated circuit (IC) exports currently exempt from US tariffs.
Lachina said the industry, while noting concerns over global trade tensions and shifting US policies, maintained a cautiously optimistic outlook.
“So far, so good for the semiconductor space,” Lachica said, citing encouraging outcomes from tariff negotiations led by Special Assistant to the President for Investment and Economic Affairs (SAPIEA) Frederick Go and Trade Secretary Ma. Cristina Roque.
Some electronics manufacturing services (EMS) exports, particularly assemblies and sub-assemblies worth around $1.5 billion, remain subject to 3 percent to 7 percent tariffs.
Lachica cited the need for continued negotiations to prevent further tariff hikes.
He said that while ASEAN initially planned a collective approach to trade talks, member countries are now pursuing bilateral deals, which benefited both Vietnam and Malaysia.
The Philippines, he said, should keep pace.
“Singapore may have lower taxes, but its manufacturing scale is limited. We have the scale, what we need now is the right policy push,” Lachica said.
After consecutive declines of 8 percent in 2023 and 6 percent in 2024, SEIPI is holding a flat growth forecast for 2025, citing ongoing global headwinds.
Lachica cited the importance of moving up the value chain—from assembly, testing and packaging to more advanced processes like wafer fabrication.
“We’re not quite there yet, but we’re proposing the creation of a wafer lab as a crucial first step. Neighbors like Vietnam, Malaysia and Thailand already have wafer fabs. If we don’t act now, we risk falling further behind,” he said.
