The electronics and semiconductor industry is driving merchandise exports up to historic levels, vaulting to an all-time high of $64 billion in the first eight months of 2026 and firming up the country’s position in the global technology supply chain.
Executive Secretary Ralph Recto, chair 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.
“Nakikita na ng mga investors na isa tayong investment choice hindi lang para sa manufacturing at assembly kundi pati na rin sa chip design, engineering, research, and innovation,” Recto said.
“Habang lumalaki ang demand sa AI, semiconductors, at data centers, mas lumalaki rin ang oportunidad para sa ating mga manggagawa, engineers, at Negosyo.”
“At habang lumalaki ang demand sa AI, semiconductors, at data centers, mas lumalaki rin ang oportunidad para sa ating mga manggagawa, engineers, at negosyo,” he added.
Philippine Statistics Authority reported that single-month merchandise exports soared to a 35-year high of $9.1 billion in August 2026 alone, a 27.8% year-on-year expansion.
Electronic products account for the lions’ share of the growth, generating $6.2 billion or 68% of the country’s total exports in August alone.
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.
In January to August, electronics grew by 26.2%, reaching $37.1 billion in value.
By destination, the United States remained as the number one export destination, ordering $12.3 billion worth, or almost a fifth of the country’s total exports for the period.
As a sign of bullish industry confidence, the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) has raised its 2026 electronics export growth forecast to 10% or approximately US$ 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 which aid registered export enterprises.
One proof of this 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% to 7% and capture 4% 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), principally a Subic-Clark-Metro Manila-Batangas link in which transport, logistics, energy, digital infrastructure, and advanced manufacturing therein will be the focus of state and private investment
The LEC aims to create up to one million jobs. A 1,600-hectare technology and advanced manufacturing hub in New Clark City alone is forecast to generate 130,000 jobs.
Meanwhile, 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.
Underpinning this drive is the improvement of infrastructure, development of Filipino talent, implementation of predictable rules, and fair and fast resolution of investment bottlenecks.
