MANILA, Philippines — Despite remaining the country’s top export, the Philippine semiconductor industry is in danger of becoming a “zombie industry” as it falls behind regional competitors in attracting high-value investments.
Bing Viera, chair of the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (Seipi) and president of Amkor Technology Philippines, warned that the sector is stuck using “Jurassic” technologies.
- Legacy Focus: Philippine facilities are largely focused on older, mainstream chips that rely on heavy manual labor rather than automation. Legacy products now account for only 18% of Amkor’s global revenue, yet a third of the company’s workforce is still based in the Philippines.
- Missed Waves: While the world shifts toward high-performance chips for Artificial Intelligence (AI) and Electric Vehicles (EVs), the Philippines is missing out. For example, Amkor recently built a $1.6-billion advanced packaging facility in Vietnam—a project the Philippines was initially considered for.
Viera identified policy stability as the primary concern for long-term investors.
- Tax Reform Concerns: The CREATE MORE Act has introduced uncertainty regarding future tax incentives. Many firms currently enjoying tax holidays must transition to the regular corporate tax system by the end of 2034, potentially exposing them to local government taxes and higher operational costs.
- Regional Rivalry: Countries like Vietnam, India, and Malaysia are aggressively courting tech giants with clearer incentive frameworks and stronger government support.
- Structural Barriers: High electricity costs, infrastructure gaps, and a weakening pipeline of engineering talent further discourage new product lines from being established in the country.
While the outlook is cautious, the sector still showed resilience in the past year. In 2025, Philippine electronics exports reached $49.64 billion, growing by 16.11%. However, Viera warns that this growth is merely “maximizing what we already have” and does not reflect the necessary evolution into higher-value tech sectors.
