The Philippines accounts for about 10% of global production in the semiconductor testing and packaging sector, according to data from the World Trade Organization (WTO).
Philippine semiconductor exports reached $30,132 million in 2025, marking a rebound after two consecutive years of year-over-year declines.
With this growth, the Philippines nearly recovered to its 2022 level, when export sales totaled $30,655 million.
Semiconductor Testing and Packaging
Global demand for semiconductors is growing due to digitalization, AI, electric vehicles, and 5G; their production is strategic: it controls technological capacity, supply chains, and national security, driving competition among major powers to secure supply, investment, and technological autonomy.
The Philippine semiconductor manufacturing sector specializes in the assembly, testing, and packaging segment of the semiconductor value chain, which accounts for approximately 10% of global assembly, testing, and packaging production.
The trend in Philippine semiconductor exports, in millions of dollars, is shown below:
- 2021: 25,757.
- 2022: 30,655.
- 2023: 27,315.
- 2024: 23,592.
- 2025: 30,132.
Foreign Inputs
According to authorities, about 80% of the inputs used in the industry are imported. In recent years, the Republic of Korea has been the largest supplier of these inputs, followed by Chinese Taipei, the United States, China, and Japan. As for exports, the main destinations for Philippine integrated circuits were Hong Kong (China), the European Union, China, Singapore, and the United States.
For Philippine exporters, this trend presents both opportunities and risks: increased demand boosts revenue and allows for reinvestment in capacity, but heavy reliance on imported inputs and concentrated markets necessitates diversifying suppliers, adding local value, and securing contracts with key customers to maintain competitiveness.
Vertical Integration
According to authorities, a significant portion of integrated circuit production consists of memory modules, such as dynamic random-access memory (DRAM), which accounted for 16.8% of the sector’s total export value in 2025.
The Philippines also has a strong presence in the production of discrete, analog, and other (DAO) chips. A market research report notes that 27.2% of integrated circuit production in 2025 was destined for the automotive industry.
In addition, the production of sensors and microelectromechanical systems increased by 9.1% in 2025.
The Philippine semiconductor industry participates in global value chains primarily through strong backward linkages (i.e., foreign content incorporated into final production).
The focus on DRAM (16.8%) and DAO chips—with 27.2% destined for the automotive sector and a 9.1% increase in sensors—indicates specialized demand. Consequently, there is an opportunity for strategic moves toward vertical integration and the localization of inputs to capture greater value in the chain.