SEMICONDUCTORS are an important topic right now, and for good reason. Modern tech won’t exist without them, and since modern armies and navies are downstream from that, it goes without saying that semiconductors are more than just products. They are a vital resource for any country to have.
Without these, you can’t have modern drones, missiles, electronic countermeasures and intelligence, surveillance and recon. Essentially, without semiconductors, a country is trapped in the past.
I’ve written about semiconductors before, and I think it’s important that we revisit it again. So, can the Philippines produce its own locally made and designed semiconductors?
Not really. Last time I checked, we help manufacture some low-end chips locally, but that’s about it. We have a local semiconductor company, SFA Semicon (listed as SSP on the PSEi), but it’s small fry compared to giants like Taiwan Semiconductor, and from what I understand, it’s focused mostly on assembly.
Producing semiconductors requires, among many other things, energy, rare earth minerals, a well-developed logistics system, a technically well-educated workforce and precision devices like lithography machines. Suffice to say, the Philippines is lacking in these areas, and I don’t think things will improve in the immediate future. Maybe that will change with the outflow of capital from China, but it’s foolish to hope.
So we have to turn to other strategies.
There’s opportunity in the capital flowing from China to Southeast Asia. Presently, most of that capital is going to Malaysia and Vietnam. A large part of that will no doubt be used for semiconductor manufacturing, which already exists to a certain extent in the region.
I believe we can try to compete with our neighbors through a combination of subsidies and government programs. A few laws and tax breaks may incentivize companies to try expanding their semiconductor plants here. Same with infrastructure specifically designed for semiconductor manufacturing.
A nuclear plant, for example, will make semiconductor manufacturing a lot more attractive to large companies.
The geopolitical situation demands that countries need to at least try to make their own semiconductors. Those won’t are going to be left behind for years or even decades to come./PN
