The United States agreed to work with the Philippines for the development of the mining and semiconductor industries, according to the Board of Investments (BOI).
The BOI announced its collaboration with US Department of State Undersecretary for Economic Growth, Energy and the Environment Jose Fernandez on charting sustainable development and economic resilience.
“We welcome this strategic collaboration with the United States in semiconductors and critical minerals. This partnership not only reinforces the Philippines’ position as a key player in the global economy but also opens avenues for mutual growth and innovation,” said BOI managing head and Trade Undersecretary Ceferino Rodolfo in a pivotal meeting during the visit of the US official.
Fernandez acknowledged the Philippines’ significant growth in semiconductors and critical minerals industries, highlighting its well-educated and highly-trainable workforce.
He committed to providing the Philippines an audience with the Minerals Security Partnership, a collaboration of 13 countries and the EU, which aims to catalyze public and private investment in responsible critical minerals supply chains globally.
Both countries agreed to work together to engage other nations to do mineral refining in the Philippines, and the US said it is ready to assist in the technical processes as the Philippines prepares a work plan on critical minerals.
The US also said the Philippines is among the seven countries it would support 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 CHIPS Act subsidizes onshore investment in semiconductor fabrication.
The US also announced that its US International Development Finance Corp. would establish a more permanent presence in the Philippines by February.
Meanwhile, the Philippines shared its plans to venture into semiconductor design. The BOI said it was looking into the establishment of a lab-scale wafer fabrication plant.
Utilizing a more generic technology for commercial and educational purposes, the wafer fab lab 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 bringing them all the way to Taiwan.
The BOI said it is committed to producing 128,000 semiconductor-related engineers and technicians by 2028 to support the development of the country’s semiconductor industry.
The US has a standing invitation to the Philippines to join the OECD Semiconductor Informal Exchange Network.