How policy choices left Philippines behind Taiwan in global chip race
Foreign factories aren't enough. What UP researchers say Pax Silica needs:
A University of the Philippines study warns the Philippines may repeat past mistakes if it fails to invest in chip design and fabrication, as seen in Taiwan's successful semiconductor industry. Taiwan's industry grew through domestic investment in research and development, while the Philippines' progress remains limited to back-end assembly and testing.
The study attributes the disparity to policy decisions made between the 1970s and 1990s, rather than market forces. Both countries entered the semiconductor business in the late 1960s, but Taiwan built an industry spanning design, fabrication, and advanced packaging, while the Philippines remains constrained to wafer fabrication.
The Philippines is now banking on New Clark City's economic security zone, but the study suggests that without government-led efforts in chip design and fabrication, the site risks becoming another logistics-oriented initiative. Taiwan's success is attributed to its heavy funding of research and development, as well as aligning its education system with industrial goals.
In contrast, the Philippines has allocated a meager budget for science and technology, limiting its pool of experts.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
