US and the Philippines form semiconductor alliance
The US Department of State and the Government of the Philippines are to team up to "create a more resilient, secure, and sustainable global semiconductor value chain."
Since it passed the CHIPS Act of 2022, the US government has been exploring opportunities to diversity its sources of supply in the semiconductor space. Now, it has confirmed a new alliance with the Philippines.
The US says the initial phase of the partnership will involve a comprehensive assessment of the Philippines’ existing semiconductor ecosystem and regulatory framework, as well as workforce and infrastructure needs.
This collaboration has arisen out of The CHIPS Act of 2022, a law that appropriated new funding to boost domestic manufacturing and research of semiconductors in the US. The International Technology Security and Innovation (ITSI) Fund has a budget of USD 500 million (USD 100 million per year over five years) to "promote the development and adoption of secure and trustworthy telecommunications networks and ensure semiconductor supply chain security and diversification through new programs and initiatives with allies and partners".