The Philippine Economic Zone Authority said over the weekend the country’s “friendshoring” strategy with the US played a crucial role in the $1-billion additional investments by American company Texas Instruments Inc.
“We are proud to host the operations of TI being a global industry leader and a model locator as it promotes the growth of the semiconductor-electronics industry, including the integration of Filipino SMEs into the ecozone value chain,” said PEZA director-general Tereso Panga
“We are most grateful for TI’s huge contributions to the economy and for its sustained confidence as a long-haul investor in the Philippines through thick and thin,” he said.
TI announced it was considering to expand its microchip production capacity in its facilities in Clark and Baguio City to partly address the global shortage on microchip and semiconductor.
TI announced the plan during the US-ASEAN Business Council meeting with President Ferdinand Marcos Jr. in Malacañang last week, leveraging on the $280-billion CHIPS and Science Act of 2022.
TI Philippines benefitted from its mother company’s $30-billion semiconductor wafer fabrication plants in Sherman, Texas with the onshoring policy of the US government under the US CHIPS Act.
TI Philippines, to provide critical support to its global headquarters in addressing the worldwide semiconductor shortage, had to step up local production of chips alongside other TI manufacturing plants in the region.
Panga said this is where the Philippines could leverage on the “friendshoring” policy of the US and through its active participation in the Indo-Pacific Economic Framework for Prosperity.
TI also found it auspicious to increase investments in the Philippines with the assurance of the green lane facilitation and ease of doing business measures and the support of the US-led IPEF, according to PEZA.
“American companies are now open to making more investments in the Philippines due to the country’s ‘transparent predictable business environment’ in accordance with the IPEF,” said US-ABC president and chief executive Ted Osius.
TI is the biggest semiconductor firm in the Philippines. It has been operating at the PEZA-owned Baguio City Economic Zone since 1979. In 2009, TI established its second assembly and test facility at Clark Freeport and Special Economic Zone in Pampanga province.
A consistent top ecozone performer, TI will again receive the Top Exporter and Billionaire awards during the PEZA’s 28th anniversary and annual investors’ recognition day on Nov. 20, 2023.
TI put in P68.4 billion in cumulative investments in the past 44 years and generated 4,000 direct jobs for Filipino workers.