The ASEAN Investment Report 2025 identifies the Philippines as one of six economies that anchor the region’s semiconductor supply chain. The report notes that nearly all of the world’s thirty largest semiconductor companies maintain facilities across ASEAN, and Philippine plants play a vital role in assembly and testing operations.
The sector accounts for a large share of the country’s export earnings and provides jobs to more than three hundred thousand workers. According to the report, the Philippines has remained competitive because of its skilled workforce and established production base. However, it must modernize infrastructure and address energy reliability to retain global clients that are diversifying their supply chains away from single-country dependence.
The government has declared the semiconductor industry a national priority cluster under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act. This legislation introduces Green Lane mechanisms for strategic projects, simplifying approval processes for new factories and expansions.
The ASEAN Secretariat emphasized that the country’s position can be strengthened further if it links local suppliers to international technology networks. Sustaining competitiveness will depend on logistics modernization, greater research collaboration, and an uninterrupted power supply to support next-generation chip manufacturing.