Chip makers seek government aid in production of ICs

Local electronic chip makers are seeking government help for investments in infrastructure particularly in support of the manufacture of integrated circuits under the new industry roadmap for the electronics sector.

Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) president Dan Lachica said the country needs to attract investments in integrated circuit or IC design center, lab-scale wafer fabrication, and research and development laboratory.

These recommendations are contained in the electronics industry’s new roadmap, dubbed Product and Technology Holistic Strategy (PATHS). PATHS was launched to further strengthen the growth of the electronics sector.

PATHS aims to diversify the country’s electronics exports from manufactured electronic goods to service-oriented electronics exports, such as integrated circuits design and research and development.

With the new roadmap, the industry targets revenues of $40 billion and $50 billion in 2025 and 2030, respectively.

“We proposed that we expand our IC design activities here. So, we wanted a technology center whether it is housed at SEIPI, or DTI (Department of Trade and Industry), or DOST (Department of Science and Technology), or any other private entity to come up with a design center.

In a way, (this) increases the opportunity for design startups, students to access IC design,” Lachica said.

He said the country had only about four or five IC design companies, compared to Taiwan with some 1,000 design companies, some of which employ Filipino engineers.

As the industry prepares for the infrastructure and technology, Lachica said it was also necessary for the academe to align the skills of the country’s pool of talent to the needs of the industry by improving the engineering curriculum.

Moreover, to produce the prototypes of the IC design, a wafer fabrication was needed here, he said.SEIPI, under the PATHS, is eyeing for a laboratory-scale wafer fabrication in the country.

But a wafer fabrication demands large investments, with at least a billion dollars for a commercial facility.Currently, electronics firms here are sending their IC design abroad for the output.

Most of the wafer fabrication facilities are only present in developed countries.

To attract wafer fabrication investments here, Lachica said there was also a need to resolve power cost and quality.

Further, a research and development laboratory focusing on electronic goods is also necessary to support the growth of the industry.

Lachica noted the lack of these facilities holds back the industry to produce new products like manufacturing of 3D printers and smartphones, although multinational smartphone makers are outsourcing their components from the Philippines.