PH
The US firm Texas Instruments Inc. (TI) is a global leader in microprocessors and semiconductors, with a history of over 90 years. TI has been operating in the Philippines since 1979, and currently has two chip manufacturing sites in Clark, Pampanga and Baguio City. These sites produce analog and embedded processing chips for various applications, such as automotive, industrial, communications, and consumer electronics.
Recently, TI announced its plan to invest around $1 billion for the expansion of its facilities in Clark and Baguio City. This plan was revealed during President Ferdinand R. Marcos Jr.'s meeting with the US-ASEAN Business Council at Malacañan Palace on August 9, 2023. TI is expected to submit an application for the expansion in two weeks, which may qualify for the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law that provides tax incentives for large-scale investments².
TI's investment plan is in line with the CHIPS and Science Act of 2022, a US law that aims to boost the domestic production of chips and support research and development in science and technology. The law was signed by US President Joe Biden in response to the global chip shortage that has affected various industries, especially the automotive sector. The law also seeks to strengthen the US's competitiveness and national security in the face of rising challenges from China and other countries.
TI's expansion in the Philippines will have significant benefits for both countries. For the US, it will increase its chip supply and capacity in the region, as well as enhance its strategic partnership with the Philippines, a key ally in Southeast Asia. For the Philippines, it will create more jobs and opportunities for its skilled workforce, as well as boost its economic growth and innovation. TI's investment will also showcase the Philippines' potential as a hub for high-tech manufacturing and attract more foreign investors to the country.
TI's investment plan is a welcome development for both the US and the Philippines, as it reflects their strong bilateral relations and mutual interests. It also demonstrates TI's confidence and commitment to the Philippine market, as well as its recognition of the country's talent and capabilities. TI's expansion will contribute to the advancement of both countries' industries and economies, as well as their global leadership in technology and innovation.