Support for chip companies urged

2 days ago

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Semiconductor chips are seen on a printed circuit board in this illustration picture taken Feb. 17, 2023. — REUTERS

THE PHILIPPINE government should provide support to multinational semiconductor companies operating locally to capitalize on US President Donald J. Trump’s tariff policies, allowing the country to position itself as an alternative to skip higher duties elsewhere and attract others to set up shop, a congressman said on Sunday.

There are 10 international electronics and semiconductor companies already in the country that the government could support to further expand their operations domestically, House of Representatives Minority Leader and Party-List Rep. Marcelino C. Libanan said.

He did not detail what support the government should provide to electronic companies.

“These companies already have the infrastructure and workforce to quickly scale up,” he said in a statement. “We should support their growth and attract more players during this pivotal period.”

Mr. Trump in early April introduced sweeping tariffs targeting most US trading partners, a move that sent global markets teetering and posed a threat to established trade relations.

The Republican leader last Wednesday walked back on his hefty tariffs, announcing a 90-day pause on higher import duties. Most countries, except China, will face a blanket 10% duty until July.

The government should make the most out of the tariff pause by negotiating lower tariffs with the US while looking for other export markets, said Mr. Libanan. The Philippines was slapped with a 17% tariff, which is among the lowest in the region, only second to Singapore’s baseline rate of 10%.

The US had slapped Southeast Asian countries with some of the highest tariffs. Cambodia is facing a 49% tariff, followed by Laos (48%), Vietnam (46%), Myanmar (44%), Thailand (36%), Indonesia (32%), Malaysia (24%), and Brunei (24%).

“These numbers show why multinational manufacturers may seriously consider relocating operations to the Philippines,” Mr. Libanan said.

“We’re looking at a rare opportunity to position ourselves as a low-cost, reliable export hub for the US market — especially in semiconductors and electronics,” he added. — Kenneth Christiane L. Basilio