Prototyping wafer fab deemed crucial for chip industry development

By Justine Irish D. Tabile, Reporter

THE GOVERNMENT economic team’s coordinating secretary, Frederick D. Go, said the establishment of a laboratory-sized wafer fabrication plant for prototyping will address the current gaps in the chip industry’s capabilities.

“We are targeting to boost what we are already good at and to grow the integrated circuit (IC) design industry by establishing a prototype or laboratory-sized wafer fab,” according to Mr. Go, who heads the Office of the Special Assistant to the President for Investment and Economic Affairs.

Speaking at the World Trade Center Metro Manila late Monday, Mr. Go said that the semiconductor industry is already strong in the assembly, testing, and packing elements of the value chain.

He said the development of the new capability is a presidential priority, with the Board of Investments (BoI) and the Department of Trade and Industry (DTI) directed to pitch possible investors.

He added that the government-owned National Development Co. (NDC) will support and fund the project.

“Obviously, we have to get the support of the various agencies to roll out these priority programs and initiatives,” Mr. Go said.

“I told DTI and BoI that we want to really grow the semiconductor and microelectronics sectors. And one way to really do it is by doing this project, and I’m very glad that they’re very supportive of this,” he added.

Mr. Go also said that he will seek the support of the Department of Science and Technology (DoST), Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI), and the private sector.

“We can probably put this together with the support of the DoST, DTI, and SEIPI. If you put all these three and the private sector participants together, I believe we can get this done,” he said.

He added that a full-sized wafer fabrication plant may be possible in the future with “a mature assembly and packaging industry, a strong IC design industry, and reduced power costs.”

“Unfortunately, I think that would be beyond my term in office. But we must lay the foundation now,” he added.

NDC General Manager Antonilo DC. Mauricio, who also attended the event, said the company is often tapped for projects such as the prototype wafer fabrication plant.

“Since we are a government investment company, we identify gaps that need a corporate vehicle for national development. And normally, since there’s no other company like us, they think about us for pushing opportunities like this,” Mr. Mauricio said.

Philippine Economic Zone Authority (PEZA) Director General Tereso O. Panga said a wafer fabrication plant is on the wish list of the US delegation expected to visit the Philippines.

“That is the purpose of the US delegation’s trip here — to look at the possibility of putting up a wafer fabrication plant,” Mr. Panga said on the sidelines of the event. “It’s upcoming, but we are also in coordination with the US Trade and Commercial Section.”

Mr. Panga recently met with US officials led by Economic Counselor Phil Nervig, Trade and Investment Economic Officer Tom Pohlman, Commercial Specialist Easter Villanueva, and Economic Specialist Alta Paraiso.

The US is currently diversifying its chip sourcing and building up its on capacity in light of the risks posed by a potential disruption of chip supply from Taiwan.

PEZA reports that the US is the investment promotion agency’s second largest foreign investor, accounting for 14.16% of its registered business enterprises, including Texas Instruments, Collins Aerospace, Analog Devices, Concentrix, MOOG, Teradyne, and JP Morgan Chase Bank.

“With PEZA being home to the largest industry players in the semiconductor industry, the parties also discussed collaboration through the CHIPS and Science Act, a US policy initiative aimed at diversifying its semiconductor supply chain,” PEZA said in a statement on Tuesday.

Expected on March 11-12, the US Presidential Trade and Investment Mission will be led by US Secretary of Commerce Gina Raimondo.

“With the incoming high-level trade mission to be dispatched by President Joseph R. Biden in March, PEZA is bullish on welcoming more US companies to increase their investment portfolio in the economic zones from the current P404.37 billion pesos,” Mr. Panga said.