THE electronics and semiconductor industry is driving merchandise exports up to historic levels as the Philippines becomes an “investment choice” for the global technology supply chain, Executive Secretary Ralph Recto said.
The industry exported an “all-time high” of $64 billion in the first eight months of 2026 and firmed up the country’s position in the global technology supply chain, Recto said on Sunday.
Recto, chairman of the Semiconductor and Electronics Industry Advisory Council, said the record output validates progress of President Ferdinand Marcos Jr.’s directive to move the Philippines beyond assembly and into higher-value activities.
The Philippine Statistics Authority (PSA) reported that single-month merchandise exports soared to a 35-year high of $9.1 billion in August 2026 alone, a 27.8 percent year-on-year jump.
“Investors are already seeing that we are an investment choice not just for manufacturing and assembly but also for chip design, engineering, research and innovation,” Recto said in Filipino.
“And as the demand for AI, semiconductors, and data centers grows, the opportunities for our workers, engineers, and businesses grow even bigger,” he added.
Electronic products account for the lion’s share of the growth, generating $6.2 billion or 68 percent of total exports in August alone.
In January to August, electronics grew by 26.2 percent, reaching $37.1 billion in value.
By destination, the United States remained as the number one export destination, ordering $12.3 billion worth, or almost a fifth of the country’s total exports for the period.
The Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (Seipi) has raised its 2026 electronics export growth forecast to 10 percent or approximately $54 billion, amid rising global demand for AI and data center infrastructure.
Seipi credited the Marcos administration’s Create More Act for strengthening the country’s investment incentives framework, particularly provisions that aid registered export enterprises.
One proof of the upbeat market is Toshiba’s planned multi-billion-peso expansion of its Philippine operations over the next three years to ramp production of high-capacity hard disk drives in high demand by data centers, which in turn creates about 3,000 new jobs.
To sustain the momentum, SEIAC recently launched the Philippine Semiconductor and Electronics Industry Roadmap, targeting $110 billion in annual exports by 2030.
By that year, the government would have increased the Philippines’ share of global semiconductor assembly, test, and packaging from 4 percent to 7 percent and captured 4 percent of global electronics manufacturing services.
Building an integrated circuit (IC) design sector would generate an additional $2 to 3 billion in annual export receipts.
Complementing these efforts is the Luzon Economic Corridor (LEC), a Subic-Clark-Metro Manila-Batangas link in which transport, logistics, energy, digital infrastructure, and advanced manufacturing will be the focus of state and private investment.
The LEC is forecast to create up to 1 million jobs. A 1,600-hectare technology and advanced manufacturing hub in New Clark City alone is projected to generate 130,000 jobs.
The Board of Investments is advancing a broader Philippine Technology Corridor, linking strategic industry hubs across the country.
This covers advanced manufacturing in New Clark City; IC design in Metro Manila; critical minerals in Mindanao; AI infrastructure in Batangas; connectivity in Aurora; and prospective wafer fabrication in Bulacan.
