Philippines plans to build first wafer fab

News | February 5, 2024

By Peter Clarke

wafer fab Analog

The Philippines Board of Investments (BOI) is to collaborate with the US on extending its capabilities in semiconductors, including building its first wafer fab.

The BOI met with US Department of State Under Secretary for Economic Growth, Energy, and the Environment Jose Fernandez, on January 30, to discuss the Philippines aspirations to focus on the semiconductor and critical minerals industries.

Under Secretary Fernandez said that the Philippines is one of six countries it will be supporting under the CHIPS Act. According to BOI, notwithstanding its aspirations in wafer diffusion, the US assistance will be focussed mainly on assembly, testing, and packaging.

During the talks Philippines Trade Undersecretary Ceferino Rodolfo, who is managing head of the BOI, revealed that the BOI wants to build a lab-scale wafer fab. The fab will offer a generic manufacturing process technology for commercial and educational purposes so that it can be used to encourage local fabless startups and to train enginers in semiconductors.

The manufacturing capability would enable local industry to do prototyping and some tape-outs locally without having to bring them to Taiwan. The BOI also said that it plans to produce 128,000 semiconductor-related engineers and technicians by 2028 to support the long-term development of the country’s semiconductor industry.

The US has earmarked US$500 million under the CHIPS Act to support foreign governments develop their semiconductor capabilities as part of moves to diversify the US supply chain.

“We welcome this strategic collaboration with the United States in semiconductors and critical minerals. This partnership not only reinforces the Philippines’ position as a key player in the global economy but also opens avenues for mutual growth and innovation,” said Rodolfo said in his opening remarks.