The Philippines is positioning itself to capture a larger slice of the trillion-dollar global semiconductor industry, aiming to attract more investments and create higher-paying jobs for Filipino workers through a newly launched national roadmap.
At the launch of the Philippine Semiconductor and Electronics Industry (PSEI) Roadmap, Executive Secretary Ralph Recto, who chairs the Semiconductor and Electronics Industry Advisory Council, said the plan sends a clear signal that the country is ready to compete in the industries that will define the next decade.
“Almost everything that will define the next decade from AI and electric vehicles, to smartphones, renewable energy, defense systems, medical devices, and data centers will run on semiconductors. And the global race for this industry is already underway”, Recto said. “Whether we act or not, this industry will continue to expand. And we must grow with it. That is the direction President Marcos Jr. has set for us".
Semiconductors and electronics already account for more than 60 percent of the country’s merchandise exports and generate over US$45 billion annually. The new roadmap sets ambitious targets for 2030: US$110 billion in semiconductor and electronics exports, an increase in the Philippines’ share of global semiconductor assembly, test, and packaging from 4 percent to 7 percent, a 4 percent share of global electronics manufacturing services, and the development of an integrated circuit (IC) design sector that can generate US$2 billion to US$3 billion in annual exports.
Recto emphasized that the government wants the country to move beyond traditional assembly and manufacturing. The long-term vision is to see products that are not only “Made in the Philippines” but also “Designed in the Philippines, Engineered in the Philippines, and Innovated in the Philippines.”
To achieve these goals, the administration has identified key bottlenecks that must be resolved: a shortage of engineers and skilled workers, inadequate power, water, and logistics infrastructure, and slow permit processes. Recto pledged coordinated government action to remove these obstacles and create a more investor-friendly environment.
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“We must also be clear-eyed about where we stand. Being good is no longer enough when everyone around us is racing to become better. Our neighbors are moving aggressively. So if we want a bigger share of this trillion-dollar industry, we must confront the problems that have held us back,” he said. “That is precisely why we have this Roadmap. This is an execution plan built to solve our weaknesses and achieve our very ambitious targets.”
The semiconductor and electronics sector is expected to play a central role in the Pax Silica initiative and the broader Luzon Economic Corridor, strengthening the country’s position in global technology supply chains.
Meanwhile, President Ferdinand Marcos Jr. separately called on Filipino innovators to develop practical solutions to pressing national challenges such as food insecurity, flooding, soil erosion, and energy shortages. Speaking at the 2026 Presidential Filipinnovation Awards, the President said innovation remains a key driver of the Philippine Development Plan 2023-2028 and urged innovators to partner with government to turn ideas into real impact.
Each awardee received a ₱3.5-million cash grant, a medallion, a plaque, and additional post-competition support, including ₱1 million worth of expert mentorship. Winning projects included technologies for biodiesel production, native chicken industry improvements, river turbines for off-grid power, advanced waste solutions, and a prototype ventilator for adult patients.
Together, the semiconductor roadmap and the push for local innovation signal a dual strategy: strengthening the country’s role in high-value global industries while fostering homegrown solutions to domestic problems. Officials acknowledge the targets are ambitious, but stress that coordinated action among government, industry, and the education sector can make them achievable.