The Philippines is set to benefit from a US-funded initiative aimed at revamping international electronics supply chains under the CHIPS and Science Act. Arizona State University (ASU) has been selected to implement the Diversifying Semiconductor Supply Chains project, which has secured $13.8 million in funding. The Philippines is one of six countries involved in this initiative, alongside Costa Rica, Mexico, Panama, Indonesia, and Vietnam.
This two-year project intends to enhance the business landscape, develop a skilled workforce, and refine regulatory frameworks, fostering a robust and diverse assembly, testing, and packaging (ATP) supply chain. US Commerce Secretary Gina M. Raimondo has expressed the aim to double the country's semiconductor ATP facilities. According to US Embassy Deputy Chief of Mission Y. Robert Ewing, the primary goal is to stimulate sector growth and attract additional semiconductor investments in the Philippines.
ASU's programs will facilitate the expansion of semiconductor chip ATP operations, with a particular focus on workforce development and regulatory improvements. A notable aspect of the initiative is the ITSI Workforce Accelerator, which will provide Filipino students with opportunities to earn credentials in semiconductor packaging, processing, and testing. Jeffrey Goss, principal investigator at ASU, emphasized their target to certify approximately 6,000 students over the next two years.
ASU will collaborate with industry associations and the Boston Consulting Group to guide policymakers in reviewing existing regulations. The development of an ATP National Playbook is underway, with its first draft expected in December, outlining policy recommendations to enhance the Philippines' competitive edge in attracting investment.
The Board of Investments has previously announced an ambitious plan to produce 128,000 engineers for the semiconductor sector. Trade Undersecretary Ceferino S. Rodolfo noted that the ITSI program is a key component in achieving this goal, initially focusing on ATP and later addressing integrated circuit design.
In addition, the Advanced Manufacturing Workforce Development Alliance (AMDev) is making strides, having trained 5,478 individuals to date. With targets of training 300 in the first year and 1,000 in the second, the program is exceeding expectations through strong partnerships. Initiated by USAID and Unilab Foundation in 2022, the AMDev program aims to develop 11,000 trainees by its fifth year and has already established a network of four advanced manufacturing institutes, surpassing its two-year target of two facilities.
