PH seeks higher-value electronics investments as exports grow

MANILA – Philippine merchandise exports reached a record USD64 billion in the first eight months of 2026, as the government pushes for investments in higher-value activities such as chip design, engineering and research.

Executive Secretary Ralph Recto, chair of the Semiconductor and Electronics Industry Advisory Council, said electronics accounted for USD37.1 billion of exports January to August, up 26.2 percent from the same period last year.

Recto said the Philippines aims to move beyond manufacturing and assembly as global demand for semiconductors and artificial intelligence (AI) infrastructure grows.

“Nakikita na ng mga investors na isa tayong investment choice hindi lang para sa manufacturing at assembly kundi pati na rin sa (Investors are seeing the Philippines as an investment destination not only for manufacturing and assembly but also for) chip design, engineering, research and innovation,” Recto said in a news release Sunday.

The Philippine Statistics Authority reported that merchandise exports reached USD9.1 billion in August alone, the highest monthly level in 35 years and a 27.8-percent increase from a year earlier. Electronics accounted for USD6.2 billion, or 68 percent of the total.

Recto said rising demand for AI, semiconductors and data centers could create more opportunities for Filipino workers, engineers and businesses.

The Semiconductor and Electronics Industries in the Philippines Foundation Inc. has raised its 2026 electronics export growth forecast to 10 percent, equivalent to about USD54 billion, citing demand for AI and data-center infrastructure.

One planned investment is Toshiba’s multi-billion-peso expansion of its Philippine operations over the next three years to increase production of high-capacity hard disk drives used by data centers. The expansion is expected to generate about 3,000 jobs.

To sustain growth, the industry council has launched a roadmap targeting USD110 billion in annual electronics exports by 2030.

The plan seeks to increase the Philippines’ share of global semiconductor assembly, testing and packaging from 4 percent to 7 percent, while capturing 4 percent of the global electronics manufacturing services market.

Developing an integrated circuit design industry could generate an additional USD2 billion to USD3 billion in annual export receipts, according to the roadmap.

The government is also banking heavily on the Luzon Economic Corridor, which links Subic, Clark, Metro Manila and Batangas, to attract investments in advanced manufacturing, logistics, energy, transport and digital infrastructure.

The corridor aims to generate up to one million jobs, including a projected 130,000 jobs from a 1,600-hectare technology and advanced manufacturing hub at New Clark City in Capas, Tarlac.

The Board of Investments is also advancing a Philippine Technology Corridor linking industry hubs nationwide, including chip design in Metro Manila, advanced manufacturing at New Clark City, critical minerals in Mindanao, and artificial intelligence infrastructure in Batangas.