US Semiconductor Strategy Shift Could Impact Philippine Industry

📆 1/1/2025 5:41 PM
📰 BusinessMirror

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Semiconductor Industry,US Policy,Philippine Economy

A possible change in the US semiconductor diversification strategy under a new administration could negatively affect the Philippine semiconductor industry. Amro economist Runchana Pongsaparn warns that modifications to the CHIPS Act could lead to a decline in technology upgrading, labor skill development, and foreign direct investment from the US. Additionally, the implementation of higher tariffs by a new US administration on trading partners could weaken global demand in the coming years.

THE Philippine semiconductor industry should brace for the impact of the possible tweaking of the semiconductor diversification strategy under a new administration in the United States, as this could strip away benefits from the local chips industry.

“In 2025 and 2026, the global demand may be weakened if the new US administration imposes higher tariffs or other trade barriers on its trading partners,” Pongsaparn also told this paper. Semiconductor and Electronics Industries in the Philippines Foundation Inc. President Danilo C. Lachica earlier told reporters that for the program’s first year in 2024,the Philippines got about $13.9 million grant from the US ITSI Fund.

Pongsaparn explained that compared to its regional peers, the Philippines has not benefitted from the upturn of the global tech cycle in 2024, and electronics exports are expected to drop before recovering in 2025.

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