Following the analysis of the semiconductor ecosystem in the Philippines, this section focuses on the institutional, policy and operational landscape shaping the Philippine semiconductor industry. It begins with a broad examination of the institutional and operational framework followed by an examination of those particularly relevant to the downstream segment of the semiconductor ecosystem. This section focuses on research and development (R&D), technology and innovation, human capital and workforce development. Together with the analysis in Chapter 2, these sections form the analytical basis of the policy recommendations introduced in Chapter 1.

The Philippine Development Plan (NEDA, 2023[1]) outlines the medium-term development strategy for the country, with the latest version covering the period of 2023 to 2028. This plan focuses on industrial modernisation, where the semiconductor and electronics industries are described as ripe for adopting more advanced packaging technologies and further integration with global value chains.

The plan further identifies the importance of promoting R&D to enhance technological capabilities and improve infrastructure to support industrial growth, including logistics and utilities, which are critical for the Philippine semiconductor ecosystem. The role of foreign direct investment and workforce development are also highlighted as relevant to industrial modernisation.

Similarly, the Philippine Export Development Plan 2023-2028 emphasises the significance of the electronics and semiconductor industry in the Philippines, highlighting its substantial contribution to the country’s export economy. The document notes that the semiconductor segment, which traditionally focused on less technology-intensive assembly, testing and packaging (ATP), is evolving towards higher value activities, for example using more advanced technologies within ATP firms already active in the electronic component manufacturing industry. This document shows the shift as crucial for maintaining a competitive edge and achieving a compounded annual growth rate of 15% or more in electronics exports, contingent on strong government support and foreign investment.

The plan outlines several strategic actions to bolster the electronics and semiconductor industry. These include offering compensatory incentives to offset cost disadvantages, implementing joint government and private sector programmes for skills development and increasing local value addition. Creating a favourable business environment through stable policies and efficient infrastructure is also important. Furthermore, the collaboration between the BOI and the Commission on Higher Education (CHED) is mentioned to strengthen industry-academia linkages. However, this arrangement has not been made public to date.

The Department of Science and Technology (DOST) also published a technology-focused roadmap (2023[2]) for the Philippine semiconductor and electronics industry, which outlines key technology development programmes designed to support the semiconductor industry. Similarly, a Board of Investment (BOI) plan outlines policy support for developing the Philippine electronics industry (DTI, 2013[3]).

In the Philippines, semiconductor policy development, implementation and enforcement are managed through a co‑ordinated approach among various government entities. The Department of Trade and Industry (DTI), along with its attached agencies, leads key industrial development strategies and finances a variety of initiatives related to the semiconductor industry. In contrast, DOST and its attached agencies oversee the administration of several technology and research-related projects. Meanwhile, a constellation of government agencies is involved in workforce development, including the semiconductor industry.

The DTI creates conditions conducive to economic development, fostering innovation and inclusivity in business. It incentivises private sector advancement and drives economic growth via a comprehensive industrial strategy. Additionally, the DTI develops policies to promote trade liberalisation, deregulation and diversification. Attached agencies like the Board of Investment (BOI) and the Philippine Economic Zone Authority (PEZA) are integral to its functioning and act within the scope of the DTI’s overarching economic mission, as established by agency-specific legislation.

The Philippine BOI is the central government agency driving investment. It actively promotes domestic and foreign investment opportunities in key economic sectors. The BOI and other investment promotion agencies approve and authorise incentives for ventures with investments of up to PHP 15 billion, while the interagency Fiscal Incentives Review Board (FIRB) manages approvals for larger projects exceeding this threshold. The FIRB was incorporated into the approval process by the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. Prior to CREATE, all approvals were carried out by investment promotion agencies.

The BOI publishes the Strategic Investment Priority Plan (SIPP), which specifies industry segments eligible for governmental incentives, including the semiconductor industry. Relevant government bodies are urged to align their policies and programme executions with the directives of the priority plan. The SIPP is reviewed every three years, and the next set of priorities for investment is envisaged in 2025.

PEZA is also attached to the DTI and tasked with registration oversight, support provision and investor incentives for export-oriented special economic zones (ecozones) established by presidential decree. While PEZA oversees 415 ecozones across manufacturing, information technology, tourism and logistics, semiconductor products constitute the largest product by investment amount within special economic zones (PEZA, 2023[4]). PEZA is responsible for administering fiscal incentives and non-fiscal incentives, including assisting with administration and paperwork. The Special Economic Zone Act of 1995 facilitates economic development by establishing special economic zones. This legislation provides the structural and operational framework for integrating, co‑ordinating, planning and monitoring various economic zones, including special economic zones, industrial estates/parks and export processing zones (PEZA, 2023[4]).

DOST directs the Philippine government’s efforts in science and technology, driving policy development and spearheading programmes aimed at fostering national technological growth. One of its planning councils, the Philippine Council for Industry, Energy, and Emerging Technology Research and Development (PCIEERD), focuses on creating strategic programs that support innovation across various industries, including semiconductors and electronics. Two attached agencies under DOST – the DOST’s Advanced Science and Technology Institute (DOST-ASTI) and the Industrial Technology Development Institute (ITDI) – are actively involved in implementing semiconductor-related initiatives. DOST also supports the Center for Integrated Circuit and Device Research (CIDR), a programme led by the University of the Philippines – Diliman, which operates mirror laboratories nationwide to enhance semiconductor research capabilities.

The education system in the Philippines is governed by three entities: the Department of Education (DepEd), responsible for formal and informal basic education; the Technical Education and Skills Development Authority (TESDA), responsible for post-secondary technical and vocational education and training (TVET); and CHED, responsible for higher education. 

DepEd formulates, implements and co‑ordinates basic education policies, plans, programmes and projects. It supervises all elementary and secondary education institutions, including alternative learning systems, both public and private. It provides for the establishment and maintenance of a complete, adequate and integrated basic education system relevant to national development goals. It is responsible for formulating national policies and plans, setting educational standards, monitoring learning outcomes, conducting research, improving the status and competency of educational personnel and enhancing learner development through programmes and projects.

CHED governs both public and private institutions of higher education as well as degree-granting programmes in all post-secondary educational institutions, public and private (Republic of the Philippines, 1994[5]). It is attached to the Office of the President. CHED is vested with a broad range of powers and functions, focused on overseeing, developing and improving higher education and research. It is tasked with creating and recommending development plans, policies and programmes, setting and enforcing minimum standards for educational programmes and institutions based on expert insights and public feedback. It oversees the monitoring and evaluation of higher education institutions to ensure quality and compliance, offering incentives or imposing sanctions as necessary. The commission also identifies and fosters centres of excellence and rationalises educational programmes to meet national and regional needs. Furthermore, it is responsible for allocating resources like grants and scholarships, directing research to support national development, developing resources and managing relevant funds (Republic of the Philippines, 1994[5]).

TESDA manages the TVET system and the educational network encompassing both the school system and non-formal classes, as outlined in the TESDA Act of 1994 (Republic of the Philippines, 1994[6]). The TESDA Central Office manages standards, certification and the National Institute for Technical Education and Skills Development, regional and provincial field offices provide policy development and 178 TESDA Technology Institutions provide direct training services through 5 special training centres, 16 regional training centres, 46 provincial training centres and 57 TESDA-administered schools (ADB, 2021[7]). TESDA also offers the TESDA Online Program, a free, open-source programme designed to provide upskilling and reskilling to address skills mismatch in the Philippines (ADB, 2021[7]).

The Strategic Investment Priority Plan (SIPP) 2022 extends the framework established by the 2020 Investment Priorities Plan (IPP), which provided incentives for sectors identified as critical investment areas. The SIPP offers incentives, including income tax holidays, enhanced deductions and a preferential 5% special corporate income tax rate.

This menu of tax incentives was enacted as part of the CREATE Act in 2021, which also reduced the corporate income tax rate from 30% to 20% for domestic micro, small and medium-sized enterprises and lowered the tax rate to 25% for all other corporations in 2022 (FIRB, 2023[8]).

The CREATE Act also rationalises incentive schemes across the Philippines, replacing a system that previously depended on different investment regimes under different laws and administered by a variety of bodies, including PEZA, the BOI and local special economic zones. Enterprises can only avail of the CREATE incentives if registered with an investment promotion agency. The CREATE Act includes a transition period for companies availing of incentives prior to the law’s passage. Some semiconductor firms note that, in its current state, the CREATE Act reduces the incentives previously provided to them in special economic zones, reducing the certainty of the policy environment for relevant firms (see Chapter 1).

The current Philippine tax scheme under the SIPP and CREATE Act provides a tiered approach to the incentives available for relevant firms, depending on the type of strategic activity undertaken by the firm (“tier”), whether the activity is export-oriented and the location of the investment. Eligible firms benefit from 4-7 years of income tax holiday before transitioning to 5-10 years of enhanced deductions of up to 150% for certain eligible expenses (depreciation, R&D, training and power among them) or a special corporate income tax of 5% (the usual corporate minimum tax is 20-25%).

The Strategic Investment Priorities Priority Plan (SIPP) 2022, the first Plan under the CREATE Act, adopted the 2020 Investment Priorities Plan as Tier 1 activities. Further activities comprising Tiers 2 and 3 were identified under the Act. As noted in Chapter 2, most semiconductor activity in the Philippines is export-oriented. Activities related to integrated circuit design fall into Tier 1 of incentives, while activities that address “industrial value-chain gaps” fall into Tier 2. Finally, Tier 3 reflects activities strategically important for the economy’s transformation, including R&D, highly technical manufacturing and innovation support facilities. Were wafers being fabricated in the Philippines, the relevant firm would be eligible for either Tier 2 or Tier 3 incentives, depending on the scale of fabrication. Table 3.1 outlines the key incentive schemes applicable to exporting semiconductor firms that fall into these tiers.

In addition, investments larger than PHP 50 billion (approximately USD 1 billion) or an investment that generates more than 10 000 local jobs could be eligible for additional incentives upon approval of the President based on the recommendation of the Fiscal Incentives Review Board. The CREATE Act specifies that any additional incentives provided for large investments must not include an income tax holiday of more than 8 years and that the total period of incentives should not exceed 40 years (FIRB, 2023[8]).

Non-fiscal incentives for those economic activities identified in the SIPP include support for employment of foreign nationals, simplified customs procedures, duty exemption on imported capital equipment and spare parts, import of consigned equipment and operation of a bonded manufacturing warehouse.

Another consequence of the CREATE Act includes the rationalisation of value-added tax (VAT), whereby the “zero-rating” (non-imposition) of this tax on local purchases only applies to goods and services directly and exclusively used in the registered project or activity by a registered business enterprise. Exporting firms must now seek approval for the refund of VAT on goods and services used in an exporting enterprise’s registered activities. This application process has been burdensome, requiring suppliers and exporters to seek a variety of certifications within economic zones. While the Bureau of Internal Revenue has sought to reduce the burdens associated with processing and filing applications, stakeholders still cite application and refund delays as a constraint. One exporter claims that although the Bureau of Internal Revenue is required to process VAT refund or tax credit claims within 120 days, it “takes an average of four to six years to process and approve such claims” (Desiderio, 2024[9]).

The government has acknowledged these concerns in the Philippine Export Development Plan 2023-2028 (DTI, 2023[10]). In collaboration with the Department of Finance, the DTI continues to work towards a simpler and more efficient VAT regime through the CREATE MORE Bill, which is currently under consideration in the Philippine parliament. Aside from proposing amendments for a simplified tax refund system for registered business enterprises and implementing a risk-based classification of claims and audit framework in collaboration with the Commission on Audit, the bill also clarifies the VAT regime to make it clearer and transaction-based, while also improving its refund process, seeking to restore the VAT zero-rating of suppliers of registered export enterprises. The bill is expected to also refine the incentives available through the CREATE Act. As outlined in Chapter 1, ensuring a stable policy environment is essential for unlocking investments for the Philippine semiconductor industry.

Sustainable and reliable electricity at competitive prices is necessary to operate semiconductor manufacturing facilities in the ATP phases. However, the provision of these basic services in the Philippines remains challenging. Firms report that energy costs in the Philippines are among the highest in Southeast Asia and electricity outages are common (Francisco and Abrigo, 2024[12]; Francisco, 2022[13]).

While the causes of high energy prices in the Philippines are multi-faceted, OECD and International Energy Agency analysis highlights a high reliance on fossil fuel imports and a fragmented grid infrastructure, which present challenges for the integration of renewable energy and contribute to higher prices (IEA, 2022[14]; OECD, 2024[15]). In this respect, public commitments to diversify energy sources and modernise energy infrastructure in the Philippine Development Plan, the Philippine Energy Plan and the National Renewable Energy Program are encouraging (Box 3.2).

Semiconductor companies increasingly consider renewable energy as part of their global environmental, social and governance goals. Enhancing efforts towards renewable energy while reducing the cost of electricity would increase the Philippines’ attractiveness as a destination for semiconductor investment.

Extending fiscal incentives to firms with self-financing energy efficiency projects under the CREATE Act is also an improvement. Another relevant legislation is the Energy Efficiency and Conservation Act, which institutionalises energy efficiency and conservation, enhances the efficient use of energy and grants incentives to energy efficiency and conservation projects. The BOI has likewise issued Memorandum Circular No. 2023-006 that allows self-financed energy efficiency projects to be entitled to income tax holidays and duty-free exemption on importation of capital equipment, raw materials, spare parts or accessories. This policy is the government’s response to the need for electronics companies to green their supply chains, including their power source, in order to remain competitive in the export market.

However, the Philippines could learn from lessons abroad when considering instruments designed to encourage investment in renewable energy. For example, production grants are a common mechanism to support the renewable energy ecosystem. At the same time, contracts for difference can provide a stable price over a long period, reducing the cost of capital and incentivising investment in energy production assets with high fixed, often sunk costs. A mix of such incentives could help to encourage firms to invest in renewable energy, boost energy supply and help to address high power costs (Box 3.3).

Freight and logistics services are required to receive the inputs necessary for semiconductor firms to operate within globally or regionally integrated production networks, facilitate reliable, just-in-time delivery of inputs and ship finished products to the end user. The high costs of freight and logistics services in the Philippines is noted as an issue for the semiconductor industry and other exporting industries in the Philippines.

While transport by air is a small share of overall freight, most semiconductor and other electronic products are exported by air to allow for just-in-time production processes in globally integrated production networks. In the case of the Philippines, almost all exports of semiconductor products are made through one airport, Ninoy Aquino International Airport, representing a possible bottleneck for the semiconductor industry and others that rely on air freight.

The Philippine government is increasing investment in infrastructure, including several projects and initiatives are now being implemented by the government to address concerns about the movement of goods within and outside the Philippines. The Department of Transportation is working on fully utilising Clark International Airport. Through the Build Better More infrastructure programme, the government is also building the New Manila International Airport in Bulacan and developing key road infrastructure projects to improve the access between industry and key ports.

As an archipelagic country, maritime freight is particularly important for the Philippines. It is used for imports of key semiconductor inputs, including those that are stable and less sensitive to light and heat. The OECD has highlighted key barriers to competition in the sector that affect maritime freight’s competitiveness. Chief amongst these is a perceived or real conflict of interest and mandate from relevant regulatory port authorities, and barriers to foreign investment that stem from the legislative designation of seaports as a public utility (OECD, 2021[21]). Addressing these barriers and encouraging greater competition could further address the high costs for the Philippine semiconductor industry.

Regulations, permits and licences required to certify compliance with them are a normal part of doing business for firms. Some permits, like business permits, are a prerequisite for business in many countries. For the semiconductor industry, chemicals required in the manufacturing process also often require specific permits associated with their use and storage. The Philippines has made important advances in the regulatory environment to improve the business climate for firms, notably passing the Ease of Doing Business Act in 2018, establishing the Anti Red-Tape Authority (OECD/ADB, 2020[22]) and developing the Green Lanes programme for strategic investments (Box 3.4).

However, as acknowledged in the Philippine Export Development Plan (DTI, 2023[10]), some Philippine business community stakeholders, including those from the semiconductor industry, have highlighted ongoing practical issues with regulatory burdens in the Philippines, particularly in receiving key permits and licenses. This section provides two examples of permits where the Philippine semiconductor industry has noted concerns but neither provides an exhaustive analysis of the Philippine regulatory environment nor describes other regulations, like export and import licenses, which have also been mentioned as impeding business for some firms (BSP, 2023[26]; Shiga, 2024[27]).

As mandated by the Local Government Code of 1991, all businesses are required to obtain a business permit, also called a mayor’s permit or municipal license, from the city or municipality where they are located to ensure that standards are met and that businesses comply with the specific requirements of the local government unit (LGU). Obtained at the city or municipal hall’s Business Permit and Licensing Office, business permits must also be renewed annually.

PEZA facilitates the process for semiconductor companies located in ecozones, enabling registration, licensing and issuance of permits to relevant enterprises. All government agencies involved assign their respective representatives in the zone for this purpose (PEZA, 2024[28]). While PEZA is the permit facilitator, the process still adheres to the existing policies and procedures of each specific LGU.

The prerequisites for acquiring a business permit differ based on the specific city or municipality. Some may necessitate a more extensive array of documents and licenses, with fees also exhibiting significant variation. Moreover, the requirements are contingent upon the nature and operational type of the business. The time associated with receiving each business permit can differ as well. For instance, according to their respective citizen’s charters, the process should take approximately two days in the city of Manila (2024[29]), two hours in Batangas City (2023[30]), and around three hours in in the city of Binan (2022[31]). However, reports from businesses find that the entire process is longer, even under optimal circumstances (Filepino, 2024[32]) and some international firms report more than a year of delay (BSP, 2023[26]).

In an attempt to alleviate regulatory burdens by streamlining and digitising institutional and regulatory requirements and processes, the DTI is aiming to facilitate the integration of the DTI’s Business Name Registration System (BNRS) into the respective online Business Permits and Licensing Systems (BPLS) of respective LGUs (DTI, 2023[33]). The DTI has signed eight memoranda of agreement (MOAs) with each of the LGUs of the cities of Bacolod, Baguio, Balanga in Bataan, Bislig, of Butuan, Carmona in Cavite, the municipality of Guiguinto in Bulacan and the city of San Pedro in Laguna for this purpose. The eight partner LGUs mentioned have automated business permitting and licensing systems for a more efficient business registration process. Integrating the DTI’s BNRS with the LGU’s automated BPLS, the registered business name can be automatically validated, eliminating the mandatory Certificate of Business Name Registration submission.

Risks associated with the use of industrial chemicals in the Philippines are governed by the Philippine Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990 (Republic Act No. 6969) (Republic of the Philippines, 1990[34]). This law is designed to regulate, restrict or prohibit the importation, manufacture, processing, sale, distribution, use and disposal of chemical substances and mixtures that present unreasonable risk and/or injury to health or the environment. It mandates the registration and inventory of chemicals and chemical substances, ensures the proper labelling and packaging of hazardous substances and establishes criteria for the handling and disposing of hazardous and nuclear wastes.

Administered by the Department of Environment and Natural Resources (DENR), the act aims to protect public health and the environment from the potential dangers posed by hazardous substances and waste through stringent monitoring, reporting and compliance requirements. Consistent with the act, the DENR, through its Environmental Management Bureau, also maintains a Priority Chemicals List (PCL), a list of chemicals that pose risks to human health and the environment, subject to a higher standard of regulation and control. This list is based on consideration of international standards related to key chemical-specific hazard criteria, like persistence, toxicity and bioaccumulation potential (Republic of the Philippines, 2020[35]) as well as the extent of exposure to the chemical during its use in the Philippines.

In addition, the DENR administers the Pre-Manufacture and Pre-Importation Notification (PMPIN) process, which requires mandatory notification of their intent to manufacture or import a new chemical that is not listed on the Philippine Inventory of Chemicals and Chemical Substances, at least 90 days but no sooner than 180 days before the activity, provided the annual volume is 1 000 kg or more (Republic of the Philippines, 2024[36]).

Firms use the PMPIN Abbreviated Form if a new chemical to be manufactured or imported is included in the chemical inventories from the United States, European Union, Canada, Australia, Japan and Korea, which have similar chemical review process as the Philippines. On the other hand, the PMPIN Detailed Form is used when a new chemical to be manufactured or imported from countries other than those listed in the PMPN abbreviated form.

Regulations are required to evaluate new chemicals adequately to protect health and the environment. Consistent with OECD standards on chemical safety, the PMPIN is a risk-based system that enables the Philippines to assess the risk of chemicals and prioritise those of higher risk for more stringent risk reduction measures (OECD, 2024[37]; 2024[38]). These regulations seek to ensure adequate evaluation of new chemicals to protect health and the environment. In this respect, the Philippines has a comprehensive regulatory scheme compared to other countries in the region. For example, Singapore’s regulatory system does not require such notification of the importation of a new chemical substance under a system like the PMPIN.

Chemicals used in the electronic manufacturing process are subject to a higher regulation standard in many countries because they pose a higher potential risk to health and safety. However, care should be taken to ensure that these regulations provide the necessary safeguards against risk to health and safety while avoiding adding to an already high regulatory burden experienced by firms (DTI, 2023[10]). This is particularly important where certain permits are prerequisites for others, like import licenses, meaning delays can quickly propagate. As such, the Philippine Chemicals Industry Roadmap, completed in 2023 as commissioned by the BOI and Samahan sa Pilipinas ng Industriyang Kimika (SPIK), has identified regulatory simplification and deregulation as one of the key strategies to improve access to chemicals in the country (BOI-SPIK, 2024[39]).

The Philippine government is aware of and making progress on permitting chemicals. For example, the BOI in collaboration with SPIK, the local chemicals industry, is working closely with other government agencies to address prevalent concerns on chemicals regulated by the government. For example, the relationship between controlled chemicals under the purview of the Philippine National Police, and the additional regulations on chemicals from the Commission on Elections during election periods can affect the transport of over 30 chemicals, affecting supply chains (SPIK, 2024[40]). These regulatory streamlining efforts would benefit the semiconductor and electronics sector and other chemical user industries and should be continued.

Still, some stakeholders point to delays linked to unclear regulatory requirements, inconsistency, a lack of co-ordination or a lack of capacity or resources from the agency, echoing the results of a stakeholder consultation undertaken through the regulatory impact assessment process (NSI, 2022[41]). Providing clarity on definitions and thresholds for impurities, which previously complicated applications for new chemicals under the PMPIN, is a welcome first step in this respect (Republic of the Philippines, 2024[42]). Still, additional guidance, further regulatory simplification and better co‑ordination may also be warranted.

The innovation ecosystem of the Philippines involves a network of players, including large multinational corporations, small and medium-sized enterprises, start‑ups, academic institutions and key government agencies including the DTI, DOST and CHED (DTI, 2018[43]).

The current Philippine Development Plan 2023-28 lays out a comprehensive strategy to boost the country’s capabilities in R&D, technology and innovation (NEDA, 2023[1]). The approach aims to advance R&D, technology and innovation from knowledge creation to commercialising R&D products and reinforcing the innovation and entrepreneurship ecosystem. The anticipated outcomes depend on fortifying the foundation of basic R&D and knowledge generation, promoting research responsive to market needs and consumer demands, expanding the implementation and commercial viability of new technologies and accelerating innovation and business creation.

To foster a favourable policy environment that encourages advancements in science, technology and innovation, Republic Act No. 11293, known as the Philippine Innovation Act (PIA), was enacted in 2019 (Republic of the Philippines, 2019[44]). A key provision of the PIA is the establishment of the National Innovation Council led by the president of the Philippines, which guides a cohesive government effort towards innovation, ensuring collaboration and co‑ordination across various sectors. Seventeen government agencies are tasked with executing the country’s innovation strategies under a unified whole-of-government approach. Agencies such as the National Economic and Development Authority (NEDA), DOST, the DTI, the Department of Information and Communications Technology (DICT), DepEd, CHED, the Department of Labor and Employment (DOLE) and the Intellectual Property Office of the Philippines (IPOPHL) are critical in driving science, technology and innovation, especially in sectors like the semiconductor industry.

The collaborative roles of government agencies are also outlined in the Innovative Startup Act (Republic of the Philippines, 2019[45]). Enacted in 2019, it mandates the DTI, DOST and DICT to assess, monitor, develop and expand the Philippine Startup Development Program, which includes benefits and incentives like the Startup Venture Fund, the Grants-in-Aid programme, subsidies, a Startup Business One-Stop Shop and the Startup Investment Development Plan for start‑ups and start‑up enablers. Additionally, the act directs DepEd, CHED and TESDA to integrate entrepreneurial programmes into their curricula and incentives to academic institutions that support research projects conducted by students and faculty.

The Philippine semiconductor industry collaborates with the semiconductor ecosystem, with many examples of collaboration between industry, the local technical community and relevant government agencies. R&D and technology activities take place through partnerships between universities and industry, often in collaboration with DOST institutionalised initiatives, including the semiconductor-focused CIDR and the broader Engineering Research and Development for Technology (ERDT) (ERDT, 2013[46]; CIDR, 2022[47]). Some key companies feature a high degree of bilateral engagement with particular universities (Box 3.5), while the industry’s interests are represented by active and influential industry associations (Box 3.6).

As mentioned in Chapter 2, the ERDT is a consortium of eight universities aiming to produce a significant number of master’s and doctoral graduates in various engineering fields. This initiative is geared towards conducting high-impact research, enhancing the qualifications of practicing engineers and cultivating a strong culture of R&D within the country. It is funded by DOST and the DOST-SEI, which monitors the scholarship programme.

The strategic direction for the consortium’s R&D efforts is set by its Program Advisory Council, which consists of DOST officials and private sector representatives. It makes decisions regarding the R&D agenda, ERDT policies and special appointments, ensuring that the consortium’s activities align with national priorities and contribute to the development of the engineering sector. The ERDT Fellowship and Scholarship Screening Committee, on the other hand, focuses on academic matters related to the ERDT programme. This includes discussing scholarships, research dissemination, visiting professorships and postdoctoral programmes. The committee’s responsibilities extend to endorsing extensions for scholarships and appointments, facilitating the continuous flow of talent and innovation in engineering R&D (ERDT, 2013[46]).

The CIDR aims to bridge the academia, industry and government sectors by offering advanced graduate courses, the Mirror Laboratories programme, which provides joint graduate programmes with laboratory installation, operating resources and software to universities, and conducting collaborative applied research focused on integrated circuit design with industry partners. The objective is to conduct intellectual and creative R&D in partnership with the industry and also develop a skilled workforce of graduate-level integrated circuit designers who can meet the needs of academia, the industry and the public sector (CIDR, 2022[47]). The CIDR has established partnerships with several academic institutions, spearheaded by the University of the Philippines – Diliman and Mindanao State University – Iligan Institute of Technology (CIDR, 2022[47]).

The CIDR also collaborates with a range of companies to enhance its initiatives. These companies include Analog Devices General Trias, the Center for Applied Microelectronics and Programming, Embedded Silicon Technology Solutions, Lattice Semiconductor, Marquee Semiconductor, ROHM LSI Design Philippines, Seedeaplus and Xinyx Design Consultancy and Services. These partnerships play a vital role in ensuring that CIDR programmes are aligned with industry requirements and help facilitate the practical application of research and technology in integrated circuits (CIDR, 2022[47]).

The Philippine government has a series of programmes enabling access to technology for industry and the research community in the semiconductor and electronics sector (Box 3.7). These include the Advanced Device and Materials Testing Laboratory (ADMATEL), the Electronics Product Development Center (EPDC), the Advanced Manufacturing Center (AmCen) and the Advanced Mechatronics, Robotics, and Industrial Automation Laboratory (AMERIAL), which are all described below.

Under DOST, the Industrial Technology Development Institute (ITDI) serves as a key facilitator for technical innovation in the industrial sector. The ITDI Materials Science Division oversees the operations of ADMATEL. Established in December 2012, ADMATEL came into being as a direct response to SEIPI’s proposal and the broader industry’s need for in-country failure analysis laboratories (ADMATEL, n.d.[51]). This national testing facility is equipped with a suite of 8 cutting-edge, accredited pieces of equipment, enabling it to offer 30 laboratory services focused on failure analysis and material characterisation failure analysis, serving as a resource for stakeholders from industry and academia. Since its establishment, ADMATEL has tested more than 13 500 samples and served more than 540 clients served from industry, academia and government. Currently, ADMATEL’s clientele includes 70 semiconductor and electronics companies that pay fees for the use of its services. 

Since 2012, ADMATEL has achieved significant accomplishments, notably receiving ISO/IEC 17025:2015 accreditation from the DTI Philippine Accreditation Bureau (DTI-PAB) in February 2015 and an update to the 2017 version of the standard in February 2020 (Layaoen et al., n.d.[52]). Its 3 laboratories – surface analysis, thermal analysis, and chemical and metallurgical – have consistently met industry standards for cleanroom conditions, including temperature, humidity and electrostatic discharge (ESD) safety, all while upholding a commitment to providing results within 24 hours at competitive prices. This operational excellence has led to a customer satisfaction key performance indicator that consistently exceeds targets and expectations (Layaoen et al., n.d.[52]). ADMATEL has planned an expansion of services requiring an investment of PHP 50 million and includes an additional scanning electron microscope unit. The funding is expected to come from DOST by the end of 2024.

The DOST-ASTI EPDC is also geared towards facilitating access to technology for electronics and semiconductor stakeholders. The EPDC is a facility that backs the electronics sector with technical services like prototype design and fabrication and assembly of printed circuit boards, as well as electronic product testing for electromagnetic compatibility and product safety to foster innovation and premium products. The EPDC project is being realised in two stages. Phase I involved the establishment of necessary infrastructure, tools and equipment essential for the centre’s operations, which focused on electronics product development. It also included training and developing the human resources needed to operate and manage the centre, alongside facilitating the design flow of electronics products. Moreover, it laid the groundwork for future R&D projects by providing the necessary tools and equipment. Phase II, completed in 2020, finalised the electromagnetic compatibility testing facility equipped with electromagnetic susceptibility capabilities, enhanced the rapid printed circuit board prototyping facility’s capacity and capabilities, assisted electronic designers across various regions and achieved international accreditation for the electromagnetic compatibility facility.

Additional DOST facilities include AmCen and AMERIAL. AmCen provides technical and business support in additive manufacturing or three-dimensional printing in partnership with the DOST-Metals Industry Research and Development Center and DOST-ITDI (AMCen, n.d.[53]). AMERIAL encompasses tools and equipment designed for training, simulation and R&D, including the Smart Factory. This fully integrated manufacturing system enhances control over manufacturing, maintenance, inventory and supply chain operations by connecting physical systems, operational data and human resources (AMERIAL, n.d.[54]).

DOST offers funding and grants to boost technology and innovation within the electronics industry, aiming to enhance knowledge generation and foster collaboration within the science, technology and innovation ecosystem. The DOST and DOST-PCIEERD Grants-In-Aid (GIA) programme supports science and technology (S&T) partnerships and applied research between higher education institutions (HEIs), government R&D institutes and non-profit S&T organisations. The GIA grant covers remaining project expenses, provided that the organisation applying contributes at least 15% of the cost in cash or through other kinds of support (like paying utilities or rent). For the 2024 call for proposals, the DOST can support PHP 30 million per project for semiconductor manufacturing services and PHP 20 million per project for electronics manufacturing services. The amount of R&D grants varies per call per year and the funding support to be provided is typically commensurate with the target deliverables committed.

Several programmes are designed to strengthen industry-academia collaboration and regional research capabilities (Quimba, Albert and Llanto, 2018[58]). The Collaborative Research and Development to Leverage Philippine Economy Program funds HEIs or R&D institutions to address private sector challenges, while the Niche Centers in the Regions for R&D Program provides grants to regional HEIs for S&T infrastructure improvements. The Business Innovation through S&T (BIST) for Industry Program supports Filipino companies in acquiring strategic technologies, including high-technology equipment and intellectual property rights.

DOST also supports the transition from R&D to market through the Funding Assistance for Spin-off and Translation of Research in Advancing Commercialization programme, which aims to commercialise PCIEERD-funded technologies into market-ready products or foster start‑up initiatives. Additionally, the Innovative Startup Act establishes a Startup Grant Fund (SGF) under DOST, the DICT and DTI to finance start‑ups and start‑up enablers, with each agency responsible for allocating and replenishing its SGF through the annual General Appropriations Act (Republic of the Philippines, 2019[45]).

To foster advancements in science, technology and innovation, the DOST-SEI offers a variety of scholarship programmes aimed at nurturing talent in these critical fields (DOST, 2022[59]). These programmes include the DOST-SEI Undergraduate Scholarship Program and the Capacity Building Program in Science and Mathematics Education, which is designed for candidates pursuing master’s and PhD degrees. Additionally, the Accelerated Science and Technology Human Resource Development Program supports graduate scholars and further selectively includes some of its scholars in its Research Enrichment Program, allowing them to increase their research experience. Furthermore, ERDT scholars are provided with opportunities through the Research Enrichment (Sandwich) Program to conduct a portion of their research internationally. The SEI also supports master’s and PhD students under the Science and Technology Regional Alliance of Universities for National Development programme.

In the Philippines, the Intellectual Property Office of the Philippines (IPOPHL) is the authority responsible for overseeing intellectual property (IP) regulations, as established by Republic Act No. 8293, also known as the Intellectual Property Code of the Philippines (IPOPHL, 2020[60]). The IPOPHL offers a range of services, including the issuance of patents, the registration of copyrights, industrial designs, trademarks, utility models, geographical indications, the layout of integrated circuits and the facilitation of technology transfer agreements. For IP rights enforcement, the IPOPHL IP Enforcement Office provides an administrative avenue for IP owners and businesses to file complaints and seek enforcement assistance (IPOPHL, 2020[61]).

Complementing the objectives of the Philippine Development Plan (PDP), the IPOPHL introduced the National Intellectual Property Strategy (NIPS) 2020-2025 in December 2019 (IPOPHL, 2022[62]). This strategy document delineates the agency’s goals and approaches to fortify IP rights protection and bolster innovation and creativity in the Philippines. Among the suggested revisions is the introduction of liability measures for landlords and others in cases of trademark infringement (UK IPO, 2023[63]). Similarly, the PDP recommended that an interagency body on the formation and implementation of IP rights, the National Committee on Intellectual Property Rights, was mandated legislatively in order to institutionalise this committee and ensure a unit within the member agencies with a budget allotted for IP enforcement. Currently, this committee operates through executive order.

The IP system in the Philippines has seen improvements in recent years. Philippine IP regulations feature robust patent and trademark laws, and the Philippines is also currently implementing reforms and initiatives, while provisions to adapt the IP code and improve the administrative and enforcement capacity of the IPOHL are pending before Congress. International observers have recognised these advances: for example, the Philippines has not been featured in the United States Trade Representative Special 301 Report for the past decade, nor on the European Union Watch List since 2019. In addition, the IPOPHL was recently designated as a competent International Searching Authority and International Preliminary Examining Authority (ISA/IPEA) by the United States Patent and Trademark Office, highlighting the competency and capability of IPOPHL patent examiners. Similarly, the IPOPHL and the Department of Justice signed a memorandum of agreement (MOA) for enhanced IP rights protection on 17 November 2023. The MOA reflects a shared commitment to strengthen the protection and enforcement of IP rights.

Despite the de jure robustness of the Philippine IP regulation landscape, the enforcement of these laws has been questioned by some interlocutors (U.S. Department of State, 2023[64]). Since joining the World Intellectual Property Organization (WIPO) in 1980, the Philippines has faced challenges in the enforcement of IP laws (WIPO, 2024[65]), which is attributed to factors that include a lengthy and complex judicial process. In the Philippines, special commercial courts have jurisdiction over civil and criminal actions involving IP, while administrative actions can be filed with the IPOPHL as a quasi-judicial body. Still, some interlocutors highlight concerns about slow and unpredictable litigation processes (U.S. Department of State, 2023[64]). Furthermore, the responsibility for enforcement costs and handling seized goods typically falls on the IP owners. As a result, many IP owners opt for out-of-court resolutions such as settlements, preferring these to navigate the challenges of the court system (U.S. Department of State, 2023[64]).

Still, despite these improvements, IP in the Philippines has had low take-up within the semiconductor industry: for instance, no integrated circuit layout has been registered with the IPOPHL despite several calls for registration from the office to the semiconductor industry. The IP sharing agreement is included in the signed memoranda for bilateral partnerships with academic partners. Moreover, many key stakeholders have identified patent filing as troublesome in the Philippines, with excessively long process times. Such patterns are prevalent in developing countries where innovation activities are nascent. However, such concerns may affect firms with incentives to patent and commercialise their innovations.

In a 2023 meeting with the US Semiconductor Industry Association, Philippines’ President Ferdinand Marcos, Jr. highlighted that boosting the semiconductor industry was among the government’s top priorities, including efforts to build capacity and train a competitive workforce (PCO, 2023[57]). The Philippines is one of the 8 government partners for the US government under the International Technology Security and Innovation (ITSI) Fund, created by the US CHIPS and Science Act. The BOI has announced a target of 128 000 engineers and technicians trained for the semiconductor industry by 2028, although it has not unveiled the exact plan to accomplish this number

Chapter 2 highlights that workers in electronic components require more on-the-job training than in other manufacturing industries and labour productivity has declined over time. This reflects the anecdotal views of the semiconductor industry, which highlight the country’s engineering graduate population but acknowledge that industry-backed up- and re-skilling programmes are necessary to meet industry workforce needs (Mapua Cayas, Grepo and Lachica, 2021[66]). A demand-driven approach to filling existing gaps in human resource supply and steps to retain the developed workforce could help to address these issues. The Philippines should also ensure that the primary and secondary education systems can adequately equip future technical workers with the foundational numeracy, literacy and critical thinking skills required for their future careers.

This section outlines approaches in the Philippines to building skills for the semiconductor industry at the national and local levels, including an extensive focus on partnerships with industry, bilateral partnerships between key universities and industry players, workplace-based training opportunities and industry contribution to some curricula. This section describes the governance of skills and employment in the Philippines, and efforts to improve the semiconductor human capital in the country.

A set of national workforce development strategies governs both central and regional skill and employment programmes. The policy plan underpinning development, including workforce capacity in key industries, is the PDP 2023-2028, which prioritises legislation in key areas of education and reskilling (NEDA, 2023[1]). The plan also lays out a legislative agenda for the five-year period, including a review of the basic education system, extending the Government Assistance to Students and Teachers in Private Education programme, ensuring the TVET Enterprise-Based Training Program meets the nation’s workforce needs and promoting upskilling and reskilling of the labour force (NEDA, 2023[1]).

The National Technical Education and Skills Development Plan (NTESDP) 2023-2028 (TESDA, 2023[67]) represents the most comprehensive ongoing national strategy for workforce modernisation and human capital development in the Philippines. The NTESDP acknowledges the country’s need to modernise and restructure education and workforce development programmes, identifying trends in the composition of TVET enrolees and industry requirements (TESDA, 2023[67]). The strategy outlines five strategic pillars of a modern workforce for the Philippines: modern technical and vocational training, enhanced workforce employability, quality assurance on standards, multi-stakeholder collaboration and stronger innovation in the TVET system.

At the national level, the DOLE administers workforce training programmes in the Philippines. At the core of the Philippines workforce development policy is TESDA, which manages the TVET system, the educational network encompassing both the school system and non-formal classes (TESDA, n.d.[68]), and CHED, which governs both public and private institutions of higher education as well as degree-granting programmes in all post-secondary educational institutions, public and private.

TESDA is the main source of institutionalised training programmes to meet industry needs in the Philippines. TESDA-administered programmes fall into four major categories: school-based, centre-based, community-based, and enterprise-based (ADB, 2021[7]). Of these, the least formalised and most responsive are community-based programmes, which are undertaken in conjunction with local governments and non-profit organisations, and particularly target marginalised groups, and enterprise-based programmes, which are implemented with companies (ADB, 2021[7]). Collectively, these delivery modes make up much of the formalised skill training outside of traditional education in the Philippines. Most TVET providers (90%) are from the private sector, with 10% from technical training institutes and other government units (TESDA, 2023[67]).

When looking at workforce development, the current strategies, activities and programmes highly emphasise TVET as seen by the integrated and expansive roles of TESDA in the PDP and NTESDP. However, TESDA does not cover workforce development in parallel with higher education and degree-granting institutions. The governance of post-secondary higher education falls under the responsibility of CHED.

CHED’s role in the PDP 2023-2028 have been identified along the lines of harmonising basic engineering, technical-vocational and higher education in conjunction with DepED and TESDA. The latest publicly available roadmap from CHED on public higher education reform was published in 2017 (CHED, 2017[69]) and the latest annual report available is from 2016 (CHED, 2017[70]). Furthermore, CHED does not have an NTESDP-equivalent strategy to participate in improving education infrastructure, promoting upskilling and reskilling of the labour force and advancing R&D and innovation, as designated by the PDP in Chapters 12, 4 and 8 respectively. For the advanced skills required by the semiconductor industry, it is essential that higher education, and notably the policies, standards and guidelines for engineering and other semiconductor-related degrees, remains responsive to workforce needs.

Higher education in the Philippines is administered and governed by CHED. At the institutional level, HEIs are classified as colleges or universities (CHED, 2012[71]). According to this horizontal typology, colleges are tertiary degree-granting institutions that offer specialised degree-granting courses. In contrast, universities must offer at least two graduate-level courses leading to doctoral degrees and undergraduate courses. HEIs are also categorised as public or private institutions. For the accreditation of private institutions, organisations authorised by CHED operate under the umbrella of the Federation of Accrediting Agencies of the Philippines, including the Philippine Accrediting Association of Schools, Colleges and Universities, the Philippine Association of Colleges and Universities Commission on Accreditation and the Association of Christian Schools, Colleges and Universities Accrediting Association Inc. (CHED, 1995[72]). Accrediting agencies for government-supported institutions are the Accrediting Agency of Chartered Colleges and Universities in the Philippines and the Association of Local Colleges and Universities Commission on Accreditation (CHED, 1995[72]).

HEIs in the Philippines also utilise a vertical typology based on programme excellence and institutional quality (CHED, 2012[71]). CHED’s Office of Institutional Quality Assurance and Governance formulates and implements policies for quality assurance and governance, co‑ordinates HEI development, supports institutional mergers and facilitates collaborations among HEIs (CHED, 2024[73]). The three types of HEIs are autonomous, deregulated and regulated. Autonomous HEIs, designated by evaluation, demonstrate outstanding performance in research, professional development and creative work through internal quality assurance systems, allowing them to launch new courses/programmes without securing permits. Deregulated HEIs perform well but still need licenses for new programmes and campuses. Regulated HEIs are institutions that must demonstrate good programme excellence and institutional quality. CHED regularly reviews its list of autonomous and deregulated institutions. As of May 2023, there are 71 autonomous HEIs and 16 deregulated HEIs (CHED, 2023[74]).

Based on autonomy and flexibility, it is relatively straightforward for autonomous institutions to integrate semiconductor industry-friendly amendments like curriculum updates, reintroduction of bachelor of technology programmes, incorporation of academic training and revising metrics for performance evaluation to train human capital beyond TVET.

Typically, collaboration between universities and the Philippine semiconductor industry, particularly in workforce development, has been largely ad hoc and bilateral. While the CIDR and ERDT collaborate with companies and firms on R&D and training human resources, typically, these collaborations are structured such that a firm partners with a single university at any given time, formalising their co‑operation through a memorandum of understanding. For example, Xinyx Design works with students from Mindanao State University - Iligan Institute of Technology and University of the Philippines – Diliman through the CIDR and Integrated Microchips Inc. (IMI). IMI has collaborated with De La Salle University under a bilateral MOU (as highlighted in OECD interviews with key stakeholders). Similarly, some bilateral partnerships in curriculum design, student internships and training, and faculty development have been forged between SEIPI and Caraga State University (CSU, 2023[75]).

Scholarships are available for students in national priority programmes through CHED and DOST to promote the supply of skills in a sector. In response to the needs of the Philippine labour market, CHED, in consultation with the technical working groups from various sectors including CHED, DOST, NEDA, DOLE, the DTI and TESDA, has identified national priority programmes for the CHED Merit Scholarship Program (CMSP) for the academic years 2023/24 to 2027/28 (Republic of the Philippines, 2023[76]). The CMSP is a scholarship provided by the government to assist students with exceptional academic talents to pursue undergraduate education in both private educational institutions and public universities, including state and/or local universities and colleges (Republic of the Philippines, n.d.[77]). This support encompasses tuition, other school fees and a monthly allowance for living expenses. A significant focus is placed on science, technology, engineering and mathematics (STEM) fields for the CMSP, allocating 50% of the national budget for these areas, with an additional 15% directed towards engineering technology subjects, particularly to support the semiconductor and electronics industries (Republic of the Philippines, 2023[76]).

In addition to the DOST-SEI Undergraduate Scholarship Program and the Capacity Building Program in Science and Mathematics Education, CHED scholarships would play a crucial role in encouraging the path to semiconductor fields for STEM enrolees. DOST also offers scholarships for undergraduate students pursuing STEM studies, which aligns with the Republic Act No. 7687 or the Science and Technology Scholarship Act of 1994.

In addition, a Transnational Higher Education Law was developed as part of a memorandum of understanding between BOI and CHED in 2020 which aims to enhance the quality and standards of education, by enabling universities and HEIs to establish transnational campuses in selected countries around the world. The law also allows educational institutions in the Philippines to establish networks and alliances with universities and higher education institutions abroad, enabling the free exchange of information, personnel and academic programs. This law can be used to help encourage greater international links between the local Philippine innovation system and the wider global semiconductor industry.

A step towards addressing issues related to skills retention, particularly in the higher education and research field, includes the Balik Scientist Program (BSP). This initiative was first introduced in October 1975 through Presidential Decree No. 819 and updated in 2007 with policies and financial backing (Montoya, 2022[78]). In 2018, the Philippine government passed the Balik Scientist Act to bolster the programme (Republic Act No. 11035). The BSP was established to facilitate the exchange of information and hasten the introduction of new technologies by reinforcing the capacities of academic, public and private sector scientists and technologists. Its primary mission is to attract Filipino scientists and technologists living abroad to come back and contribute their knowledge to the nation’s development.

Participants in the BSP are entitled to a range of benefits, incentives and privileges across short-, medium- and long-term engagements. These advantages encompass airfare, a daily stipend, health coverage, assistance with visa applications, grant funding based on proposals, memberships in the National Research Council of the Philippines and various professional organisations, as well as support for travel and lodging for conferences within 12 specified fields of priority such as electronics, manufacturing and semiconductors (Montoya, 2022[78]). Since the programme's inception in 1975, it has successfully involved 631 Balik scientists, who have contributed their expertise across 150 host institutions in 16 different regions throughout the Philippines (Daily Guardian, 2023[79]). However, this programme is restricted to Filipino scientists and others working in the research sector and is not currently targeted towards talented workers in the private sector.

Some semiconductor firms conduct training through TESDA’s enterprise-based programmes. These programmes can take the form of an apprenticeship or leadership programme, designed to provide certification for skilled workers who learn the trade through a position within a company, or a dual training programme, which combines education at a school or training centre combined with onsite training at a business. An apprenticeship programme is a training and employment programme involving a contract between an apprentice and an employer on an approved apprenticeable occupation. Generally, it aims to provide a mechanism that will ensure the availability of qualified, skilled workers based on industry requirements. The period of apprenticeship covers a minimum of four and a maximum of six months.

Only companies with approved and registered apprenticeship programmes under TESDA can hire apprentices. The goal is to meet industry demand and establish a national apprenticeship programme with standards for the protection of apprentices. The enterprise-based programmes include training for 21 electronics and semiconductor skills, such as semiconductor back-end operation, semiconductor front-end operation and electronics/semiconductor production line machine servicing, for which the duration ranges from 80 to 500 working hours (TESDA, 2020[80]), although other institution-based and community-based semiconductor and electronics training is available. In 2020, 15.45% (77 179) of all TESDA certification assessment takers were in Electrical & Electronics sector TESDA Training Programmes with a pass rate of 90.16% (TESDA, 2021[81]). In 2021, 10.25% (65 365) of all TESDA certification assessment takers were in the TESDA training programmes with a pass rate of 88.97% (58,156) (TESDA, 2022[82]). In 2022, 9.91% (89 896) of all TESDA certification assessment takers were in the TESDA training programmes with a pass rate of 90.17% (81 033) (TESDA, 2022[83]).

In addition to TESDA enterprise-based training, semiconductor companies also offer on-the-job training for operators and engineers. Based on the skills requirement of the company, the training programmes are specific to the company. For example, a research report compiled by Hong Kong (China) industry researchers found that schools in the Clark Freeport and Special Economic Zone established vocational programmes tailored to businesses operating in the zone (HKTDC, 2017[84]). Additionally, PEZA has initiated a number of programmes to train administrators and workers with the skills necessary to fill the employment needs of companies in special economic zones, including the SEZ Institute and the PEZA Academy (PEZA, 2020[85]).

While the Philippines has acknowledged trends in workforce demand and has a national and regional network of job training programmes to build from, most key reforms are recent, pending or prospective (TESDA, 2023[67]). For example, the 2023-28 iteration of NTESDP lists among its objectives increased stakeholder and employer ownership of programming, skill-based benchmarking, youth-targeted employment and entrepreneurship initiatives, increased capacity for training programmes, and innovative efforts specifically designed around reskilling and upskilling for workers (TESDA, 2023[67]). TESDA researched and published a series of labour market intelligence reports, identifying and responding to stakeholder needs and inputs (TESDA, 2023[67]). While encouraging, these reforms are recent or forthcoming, meaning that neither their success nor impact on the semiconductor ecosystem can be evaluated at this early stage.

Many encouraging signs, including the creation of industry boards for technical and vocational training programmes, the use of partnerships with foreign governments and the private sector to fund targeted workforce programmes, and the publication of a series of labour market research reports indicate that the Philippines is making informed decisions to restructure its workforce development strategy. However, there is room for improvement in fully utilising existing deep links between academia and the private sector to meet the semiconductor industry’s needs and ensuring policy making in this area remains targeted and demand-driven.

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