A noteworthy meeting has recently unfolded that promises to redefine the landscape of semiconductors and critical minerals industries. The Philippine Board of Investments (BOI), in a pivotal conversation with United States Department of State Under Secretary for Economic Growth, Energy, and the Environment Jose Fernandez, discussed the challenges, opportunities and competitive advantages in the Philippines. This dialogue set the stage for a strategic collaboration between the two nations, focusing on the semiconductor and critical minerals industries.
BOI Managing Head and Trade Undersecretary Rodolfo, in his opening remarks, welcomed this strategic collaboration with the United States. This partnership not only bolsters the Philippines’ position as a key player in the global economy but also paves the way for mutual growth and innovation. Together, the two nations are charting a course toward sustainable development and economic resilience.
US Under Secretary Fernandez acknowledged the Philippines’ significant growth in semiconductors and critical minerals industries, highlighting the country’s well-educated and highly-trainable workforce. He committed to providing the Philippines an audience with the Minerals Security Partnership (MSP), a collaboration of 13 countries and the EU, which aims to catalyze public and private investment in responsible critical minerals supply chains globally.
As the United States and the Philippines work together to engage other nations to conduct mineral refining in the Philippines, the US stands ready to assist in the technical processes as the Philippines prepares a work plan on critical minerals. This global perspective is a testament to the international relevance and impact of this strategic collaboration.
Shifting the focus to semiconductors, the US shared that the Philippines is among the six countries it will be supporting under the CHIPS Act. Recognizing the potential of the country’s semiconductor industry supplemented by its talent pool, the assistance will be focused mainly on assembly, testing, and packaging. The US also announced that its International Development Finance Corporation will establish a more permanent presence in the Philippines by February.
The Philippines shared its plans to venture into semiconductor design. The BOI is looking into the establishment of a lab-scale wafer fabrication plant. This proactive move aims to train and upskill the workforce, while enabling the local industry to do prototyping and some tape outs of semiconductor chip designs in the country instead of sending them all the way to Taiwan.
The Agency also shared that it is finalizing its goal to produce 128 thousand semiconductor-related engineers and technicians by 2024 to support the development of the country’s semiconductor industry. This ambitious goal underlines the commitment to fostering the necessary human resources to drive forward the semiconductor industry.
The US invited the Philippines to join the OECD Semiconductor Informal Exchange Network. The US emphasized its goal of implementation rather than the discussion of policy ideas. This invitation extends the dialogue and collaboration to a wider network of nations, enhancing the potential for mutual growth and innovation.
The upcoming OECD Interim Economic Outlook for 2024 is anticipated to provide valuable insights on how to develop further the local semiconductor ecosystem with possible funding under the CHIPS Act. This anticipation sets the stage for future growth and potential strategies for the industry.
Undersecretary Rodolfo also provided an overview of the country’s economic landscape and touched on significant investments, particularly in renewable energy. The discussion expanded to encompass electric vehicles and green metals, underscoring the government’s continuous effort to implement policy reforms to facilitate ease of doing business in the Philippines through Executive Order 18, Constituting Green Lanes for Strategic Investments.
In conclusion, the meeting was marked by a pronounced shift towards using and developing cleaner and more sustainable sources of energy. The Philippines is not only positioning itself as an attractive investment destination but also contributing to global efforts for a greener future. The meeting concluded on a positive note, with both nations expressing optimism about future collaboration and economic growth.
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