Taiwan Eyes Semiconductor Ties with Philippines to Bolster Supply Chain

The Philippines could play a key role in rounding out Taiwan’s semiconductor supply chain, resulting in a major boost to two-way trade, a Taiwan official said. James C. F. Huang, Taiwan External Trade Development Council chairman, said Taipei is actively exploring partnerships with foreign partners, including the Philippines, to complement its growing tech manufacturing ecosystem. “Taiwan semiconductor companies cannot do it alone… that’s why we need a global alliance of semiconductor partners. The Philippines, with your great potential, can play a very active role in the global semiconductor ecosystem,” he told BusinessWorld on the sidelines of the Taiwan Expo 2026 on Thursday. The Philippines is well-positioned to attract Taiwan companies seeking to diversify their operations, Mr. Huang said. “The Philippines is our closest neighbor… and there’s a strong Taiwanese expatriate community in the Philippines,” he noted. “Those are very good conditions for our two countries to work hand-in-hand in certain areas of semiconductor manufacturing,” Mr. Huang added. Mr. Huang also noted that the young, English speaking Philippine workforce fits in well with Taiwan companies’ expansion plans. Taiwan was the Philippines’ 10th largest trading partner as of the end of July, with total trade valued at $833.36 million, according to the Philippine Statistics Authority (PSA). Philippine exports to Taiwan amounted to $337.87 million during the first seven months, with imports at $495.49 million, the PSA reported. “Although right now we are the 10th largest trading partner of the Philippines, I’m sure in the next few years, we will move up the ladder as one of the most important trading partners of the Philippines,” Mr. Huang told reporters separately. Wallace M. G. Chow, representative of the Taipei Economic and Cultural Office in the Philippines, said Taiwan is also looking to explore partnerships with Philippine firms in artificial intelligence (AI), renewable energy, smart agriculture, smart healthcare, and digital infrastructure. Manila and Taipei can also explore further partnerships in semiconductors and electronics through the Washington-led Pax Silica initiative, Mr. Huang said. “Nowadays, no country can manufacture semiconductors alone. You have to work with other countries. Pax Silica, I think, is a platform for all like-minded members to work with each other,” he said. The Philippines is one of 24 signatories to Pax Silica, while Taiwan is considered a non-signatory participant. Launched by the US in December, the Pax Silica initiative hopes to build a network to strengthen the global supply chain for AI chips and semiconductor manufacturing.