USA Calls for Chip Factory Establishment in the Philippines to Reduce Dependency on China and Taiwan

US Officials Seek New Asian Semiconductor Manufacturing Locations

The US administration is actively searching for new allies in Asia to house semiconductor manufacturing units. This effort aims to reduce dependency on Chinese and Taiwanese suppliers for geopolitical reasons, as stated by the US Secretary of Commerce. The plan identifies the Philippines as a prospective growth hub in the region.

Gina Raimondo Calls for More Semiconductor Facilities in the Philippines

During her visit to the Philippines, Gina Raimondo urged for a doubling of the currently situated 13 chip testing and packaging facilities. She claims that Bloomberg has reported US firms intend to invest over $1 billion in the local economy. Raimondo confirmed that, “American companies have recognized that our chip supply chains are too concentrated in a few countries around the world,”.

Supply Chain Diversification

Raimondo emphasized the need to avoid placing all one’s eggs in one basket — it’s vital not to purchase all chips from one or two countries worldwide. For this reason, she concluded that American businesses should diversify their semiconductor component supply sources.

US Support for Companies Investing in the Philippines

While Raimondo did not explain how US government intends to assist American firms in establishing a presence in the Philippines, she named the nation as an attractive investment destination for American corporations. In the grand scheme of supply chain diversification, the Philippines sits, in her words, “at the top of the list”.