Texas Instruments Inc. (TI), an American microprocessors manufacturer, is set to invest up to $1 billion in expanding its facilities in Clark and Baguio City. This investment comes in response to the global chip shortage and was announced during a meeting between US officials and President Marcos in Malacañang.
The expansion plans of TI will be submitted to reach the $1-billion threshold under the Corporate Recovery and Tax Incentives for Enterprises (Create) program within two weeks. This program, also known as Republic Act No. 11534 of 2021, aims to reduce the corporate income tax rate from 30 percent to 25 percent.
TI’s investment aligns with the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act of 2022, signed into law by US President Joe Biden. The CHIPS Act provides subsidies and tax breaks to boost semiconductor manufacturing in the United States.
President Marcos welcomed TI’s investment and expressed the Philippines’ interest in the semiconductor industry. He highlighted the Philippines’ skilled workforce and its ability to collaborate with foreign corporations.
The Philippines has implemented a comprehensive program to upskill and reskill its workers to meet the demands of the evolving labor market.
Chips shortage and its causes
The US-Asean Business Council, with over 170 member companies generating almost $7 trillion in revenue and employing more than 14.5 million people, also discussed the shortage in microchips. The shortage arose due to factory shutdowns, increased demand during the Covid-19 pandemic, and sanctions against Chinese tech companies.
Panic buying of chips further exacerbated the shortage and drove up the prices of microchips and final products.
Leaders of the Semiconductor Industry Association (SIA) expressed confidence in the Philippines as a critical player in the global semiconductor industry. Several SIA member companies, including Analog Devices, Onsemi, and Texas Instruments, have significant investments in the Philippines.
According to the Semiconductor and Electronics Industries in the Philippines Foundation Inc., electronics exports reached $45.63 billion, accounting for 62.36 percent of total Philippine exports as of November 2022.
—With reports from Inquirer Archives and Reuters
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Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
