[News] SE Asia Races in Semiconductors, Philippines Seeks TSMC’s Help

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The global race to develop semiconductor industries is heating up, with countries like Singapore, Malaysia, Vietnam, and India making significant strides. Now, the Philippines is joining the fray with a new push to expand its presence in the sector.

According to a Bloomberg report, the Philippines is actively reaching out to Taiwanese semiconductor giants such as TSMC and United UMC in an effort to secure equipment and expertise needed to build its own chip fabrication operations.

Dan Lachica, head of the Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI), explained that they are encouraging companies like TSMC and UMC to send their older, depreciated equipment to the Philippines. In return, Filipino workers would be trained to support these companies’ global operations.

The Philippines, home to more than 100 million people, lags behind its neighbors such as Malaysia and Singapore in the complex chip manufacturing industry, which requires billions of dollars in initial investment. Taiwan, led by TSMC, dominates the global semiconductor market, and its companies are expanding overseas to mitigate risks posed by tensions with China.

Neither TSMC nor UMC provided detailed responses to Bloomberg’s inquiries. TSMC declined to comment, while UMC reiterated its policy of not addressing market speculation.

The Philippines’ strategy is part of a broader effort to move beyond low-margin chip testing and packaging into more advanced areas such as IC design and semiconductor wafer fabrication.

Elsewhere in Southeast Asia, Vietnam has been increasing its focus on semiconductor development. Prime Minister Pham Minh signed Decision No. 1018/QD-TTg on September 21, as reported by the Vietnam Government News website. The decision outlines the country’s vision for semiconductor growth, with short-term goals set for 2030 and long-term projections extending to 2050.

India is also making strides in this field. During Prime Minister Narendra Modi’s visit to the U.S. in September, the two countries agreed to build a semiconductor plant focusing on infrared, gallium nitride, and silicon carbide chips, backed by India’s Semiconductor Mission and a strategic partnership with the U.S. Space Force.

(Photo credit: SEIPI)