PH semiconductor sector eyes AI growth

The report highlights the Philippines' long-standing role in semiconductor assembly, packaging, and testing within Southeast Asia. This existing foundation, combined with a skilled talent pool, positions the country to capitalize on the industry's evolving needs. The shift towards AI and advanced computing, alongside a broader trend of supply chain diversification, creates an opening for the Philippines to build on these strengths.

Companies are increasingly looking to expand manufacturing and diversify sourcing within Asia-Pacific, with 35% of surveyed firms planning to expand into additional regional markets over the next three years. This trend is driven by a desire for supply chain resilience amidst geopolitical uncertainty and regulatory complexities. The report suggests that the Philippines could attract investment in higher-value activities like research, engineering, and design by leveraging its current base.

The growing demand for semiconductors, fueled by AI infrastructure, electric vehicles, and advanced communications, also increases the complexity of supply chains. Components often move through multiple manufacturing and testing hubs, which necessitates robust international logistics networks. Forty-four percent of survey respondents identified faster international shipping as the most important capability when choosing logistics partners, suggesting that efficient transport infrastructure is crucial for countries aiming to capture more industry growth.