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The Philippine government needs to invest more in the local semiconductor industry to boost its competitiveness globally, according to RS Group PLC, an electronics and industrial products distributor.
In this B-Side episode, Sean Fredericks, the President of RS Asia-Pacific, discusses with reporter Sheldeen Joy Talavera the potential of the Philippines to become a key player in the industry.
“The Philippines itself is a critical player in the global semiconductor industry… The country’s strategic location provides crucial access to the Southeast Asian market through international shipping and air routes,” he said.
He also said that the country’s English-proficient population and strict adherence to intellectual property protection and international labor laws make it an attractive investment destination.
According to trade data released by the Philippine Statistics Authority, the value of the country’s electronics product exports in 2022 reached $45.66 million, representing a 13.9% increase from the previous year. Semiconductors accounted for the majority at $35 million, followed by electronic data processing at $6 million, and office equipment at $504,450.
Mr. Fredericks highlighted several areas that the government needs to address in order to improve the semiconductor industry.
“The challenges I would say include the country’s inadequate infrastructure, including power supply, roads, and networks. These are basic infrastructure elements that require expansion to support the industry,” he said.
He also highlighted the shortage of high-end skilled talent, such as engineers and technicians, due to Filipinos seeking opportunities abroad.
Moreover, Mr. Fredericks discussed how the ongoing chip dispute between the United States and China can be an opportunity for the Philippines to solidify its position in the industry.
“The ongoing US-China dispute hopefully presents the Philippines with some new opportunities for business. Many US manufacturers are now resourcing away from China to balance their risk,” he said.
The B-Side episode was recorded remotely on May 23, 2023.
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