PHL seeking $280-million ADB loan for semiconductor development

THE PHILIPPINES is seeking a $280-million loan from Manila-based Asian Development Bank (ADB) to finance research into the domestic production of semiconductors, the Department of Trade and Industry  said.

“We are working closely with ADB on the ASCEND (Advancing Skills, Competitiveness and Enterprise-Driven Innovation) program, which is vital to our ASEAN Semiconductor roadmap,” Trade Secretary Ma. Cristina A. Roque said at a forum last week.

She said the program aims to position the Association of Southeast Asian Nations (ASEAN) as a global hub for high-tech manufacturing.

ASCEND is still subject to review and approval by the National Economic and Development Authority Board’s Investment Coordination Committee.

The ADB has yet to disclose the timeline for implementing ASCEND. The loan amount could also be subject to change, it said.

In a statement, the ADB said the program aims to boost R&D in selected state universities and translate them into commercially viable products.

“It will improve collaboration mechanisms between education institutions and industry enterprises through grants for applied research, startup incubation, and enterprise development,” ADB said.

The project will also support facility upgrades and training programs to match industry needs, it said.

“This investment initiative builds on previous ADB support that promoted Industry 4.0 development and opportunities identified for technology-driven startups,” the lender said.

The Philippines has been a key player in back-end processes like assembly, testing, and packaging.

However, it has long struggled to move up to high-value manufacturing due to high power costs and other industry constraints.

Ms. Roque noted that ASCEND aligns with the ASEAN Semiconductor Roadmap, which “aims to strengthen regional value chains, develop skilled workers, and position ASEAN as a global hub for semiconductor investment.”

The roadmap is one of ASEAN’s Priority Economic Deliverables this year. The Philippines is currently chairing the bloc and steering its agenda.

Philippine semiconductor exports rose 21.6% to $3.07 billion in January, according to the Philippine Statistics Authority. — Beatriz Marie D. Cruz