US Commerce Secretary calls for expansion of semiconductors in Philippines
(MENAFN) During a recent US trade and investment mission to the Philippines, US Commerce Secretary Gina Raimondo emphasized the importance of significantly enhancing the Philippines' capacity for semiconductor assembly, testing, and packaging. Raimondo's call for action aims to strengthen the growing cooperation between Washington and its longstanding Asian allies amidst heightened geopolitical tensions.
Currently, the Philippines hosts 13 semiconductor factories specializing in the assembly, testing, and packaging of chips manufactured elsewhere. Raimondo's ambitious directive, urging a doubling of this capacity, underscores the strategic imperative for greater semiconductor production capabilities in the region. This push for expansion follows substantial investment commitments totaling USD1 billion from companies such as Microsoft and United Airlines, as part of a 22-member trade delegation accompanying Raimondo.
The initiative reflects broader efforts by the United States to bolster economic ties with its Asian partners, recognizing the need for enhanced economic engagement alongside military and security cooperation to effectively counter China's growing influence in the region. The economic integration of Southeast Asian countries with China has raised concerns in Washington, prompting a concerted effort to strengthen economic partnerships and investments in key sectors like semiconductor manufacturing.
Despite being the largest source of foreign direct investment in Southeast Asia, the United States has faced challenges in maintaining its economic influence in the region. Setbacks such as its withdrawal from the Trans-Pacific Partnership trade agreement in 2017 under the Trump administration, coupled with the collapse of the trade pillar of the Indo-Pacific Economic Framework for Prosperity Agreement last year, have left a void in regional economic partnerships, largely filled by China. Analysts emphasize the significance of initiatives like Raimondo's call for semiconductor expansion as part of broader efforts to recalibrate US economic engagement in Southeast Asia amidst evolving geopolitical dynamics.
Currently, the Philippines hosts 13 semiconductor factories specializing in the assembly, testing, and packaging of chips manufactured elsewhere. Raimondo's ambitious directive, urging a doubling of this capacity, underscores the strategic imperative for greater semiconductor production capabilities in the region. This push for expansion follows substantial investment commitments totaling USD1 billion from companies such as Microsoft and United Airlines, as part of a 22-member trade delegation accompanying Raimondo.
The initiative reflects broader efforts by the United States to bolster economic ties with its Asian partners, recognizing the need for enhanced economic engagement alongside military and security cooperation to effectively counter China's growing influence in the region. The economic integration of Southeast Asian countries with China has raised concerns in Washington, prompting a concerted effort to strengthen economic partnerships and investments in key sectors like semiconductor manufacturing.
Despite being the largest source of foreign direct investment in Southeast Asia, the United States has faced challenges in maintaining its economic influence in the region. Setbacks such as its withdrawal from the Trans-Pacific Partnership trade agreement in 2017 under the Trump administration, coupled with the collapse of the trade pillar of the Indo-Pacific Economic Framework for Prosperity Agreement last year, have left a void in regional economic partnerships, largely filled by China. Analysts emphasize the significance of initiatives like Raimondo's call for semiconductor expansion as part of broader efforts to recalibrate US economic engagement in Southeast Asia amidst evolving geopolitical dynamics.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Comments
No comment