The Philippines is emerging as a key player in the global manufacturing landscape as companies seek to diversify their supply chains beyond China, according to JLL, a leading real estate and investment management firm.
The country’s semiconductor, electronics and electrical industries are particularly well-positioned for growth, it said. The Philippines is one of the seven countries teaming up with the US under the CHIPS Act, which aims to strengthen and diversify the US semiconductor supply chain.
“Diversification within supply chains is a natural step for companies involved in manufacturing within the wider economic lifecycle of this region. We see Southeast Asia and India representing a natural complement to the existing production strength of China,” said JLL Asia Pacific head of manufacturing strategy Michael Ignatiadis.
Rising costs in China, including land prices, wages and material costs are driving this shift towards diversification, it said.
