MANILA, Philippines – Companies from the United States expressed optimism in investing in the Philippines, particularly in the semiconductor industry, as it aims to move beyond assembly, testing, and packaging (ATP) of computer chips in the global supply chain.
During a moderated Q & A with media during the 2025 Philippines Business Mission of the US-ASEAN Business Council (USABC) in Pasay City on Thursday, Amb. Ted Osius (ret.) said the semiconductor industry in the Philippines looks promising.
“The prospects are very good. What we have is a lot of expertise when it comes to packaging stage of semiconductor,” Osius said.
“But what's the promising is for earlier stage involvement of expertise in the R&D (research and development) and the design of semiconductors,” he added.
Osius mentioned that the Philippines possess the “materials” and the “talent”, and when put into an effective ecosystem, it will be beneficial.
When asked how the Philippines can step up in the value chain in the semiconductor industry, Stephen Braim, USABC’s Vice President for Government and Regulatory Affairs, Asia Pacific at IBM, said that Artificial Intelligence (AI) and other technologies that drive productivity through the different sectors can help the Philippine economy become competitive in the international market.
“All of those things are very attractive. And if you think about moving the Philippines up the value chain, it's about getting those technologies that drive productivity through the banking sector, through education sector, through transport, logistics, agriculture,” Braim said.
“All of those would be underpinned by the use of AI that makes the Philippine economy internationally more competitive, and that drives jobs, more investment,” he added.
The Philippines is the ninth largest exporter of computer chips globally, contributing to billions of dollars to the country’s foreign exchange earnings.
Data from the Philippine Statistics Authority (PSA) showed the US was the country’s top export destination in 2024, accounting for 16.6%, or $12.14 billion, of the total export receipts of $73.27 billion.
Last July, President Ferdinand Marcos, Jr. held a meeting with top executives of the Semiconductor Industry Association (SIA) during his official visit to the United States to further strengthen the economic ties of Manila’s biggest industries with Washington.
Tariff on Semiconductor industry
The semiconductor industry may face its biggest challenge, though, after President Donald Trump proposed to impose 100 percent tariffs on semiconductor exports to the U.S., triggering alarm among Philippine economists and the country’s chip industry.
In an interview with Philippine Ambassador to Washington D.C. Jose Manuel Romualdez during the sidelines of the USABC economic mission, he expressed concern on Trump’s plan to impose tariffs on semiconductors and computer chips, saying it would affect the global semiconductor supply chain.
Romualdez mentioned that the Philippines is now in talks with the U.S. regarding the new tax policy, which he believes will “impact a lot of companies, not only here in the Philippines, but all over the Asia-Pacific Region.”
“We are asking our friends also from other organizations that have been helping us to be able to exempt this particular industry, especially those that have been established here in the Philippines for so many decades now,” Romualdez said.
“It's a very substantial amount. I can just tell you that it's very important for us to make sure that this industry is maintained here,” he added.
Romualdez said consultations are ongoing with US trade officials, the US-ASEAN Business Council, US Chamber of Commerce and the Semiconductor Association in the United States and Washington D.C.
Trump’s latest announcement on global duties on electronics came more than three months after announcing sweeping reciprocal tariffs ranging from 10% to 100% on its global trading partners, including security allies, such as the Philippines and Japan.
Trump, however, said American companies that will manufacture the chips and semiconductors, which power automobiles, computers, mobile phones, gadgets, appliances and other essential tech equipment, in the US would be exempted from duties.
Tariffs on PH products considered final
Meanwhile, Romualdez told reporters that Manila is still finalizing the details on the new 19 percent duties imposed by the Trump administration on Filipino products entering the U.S.
According to Romualdez, Manila and Washington are “still on the negotiating” stage on the specifics and exemptions in the trade deal, but reiterated that the 19 percent duties earlier announced by the White House is considered final.
He clarified that U.S. agricultural products are likely not included in the list of duty-free American goods.
“Of course, we have to consider the agricultural sector, which is very important for us,” he said.
Department of Foreign Affairs (DFA) Secretary Ma. Theresa Lazaro, who also attended the meeting, said that the recent tariffs imposed by the Trump administration “encourages” more cooperation with countries within the ASEAN.
“Discussions are evolving within ASEAN,” she said.
The US-ASEAN Business Council, Inc. is the premier advocacy organization for U.S. corporations operating within the dynamic Association of Southeast Asian Nations (ASEAN), according to a briefer provided by the group.
“Worldwide, the Council's membership of more than 180 companies generates almost US$7 trillion in revenue and employs more than 14.5 million people. The Council is the only American organization formally recognized in the ASEAN Charter and meets annually with the Finance, Trade, and Energy Ministers at their annual meetings,” according to the USAABC.
Today, its members include the largest U.S. companies conducting business in ASEAN, and range from newcomers to the region to companies that have been working in Southeast Asia for more than 100 years. The Council has nine offices around the globe, in Washington, DC; New York, NY; Bangkok, Thailand; Hanoi, Vietnam; Jakarta, Indonesia; Kuala Lumpur, Malaysia; Manila, Philippines; Singapore; and Yangon, Myanmar.
