Next step is climbing value ladder after PHL electronics exports surge — Recto

The Philippines is pursuing a strategy to elevate its position in the global technology supply chain by shifting its electronics industry focus. While the country has seen significant growth in electronics exports, with $37.1 billion in the first eight months of the year, the government intends to move beyond basic assembly and manufacturing. Executive Secretary Ralph G. Recto indicates this shift is driven by expanding global demand for artificial intelligence, semiconductors, and data-center infrastructure.

The targeted higher-value activities include chip design, engineering, research, and innovation. The government's roadmap sets ambitious goals for 2030, including increasing its share of global semiconductor assembly, testing, and packaging (ATP) from 4% to 7%. It also aims to develop an integrated circuit design industry capable of generating $2 billion to $3 billion in exports annually, alongside capturing 4% of global electronics manufacturing services. Toshiba Corp.'s planned expansion in the Philippines, expected to create 3,000 jobs, is cited as an example of ongoing investment.

This strategic push builds on robust export performance, with overall merchandise exports hitting a record $64.04 billion in the first eight months, a 14.8% increase year-on-year. Electronic products contributed substantially, growing 26.2%. The Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) has raised its 2026 electronics export growth forecast to 10%. The Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act (CREATE Act) is noted as a factor in strong order growth, particularly from the US market.