Upon taking office, President Ferdinand R. Marcos Jr. has prioritized the development of the semiconductor industry in the Philippines, recognizing its critical role in the global supply chain and economic growth.
Through the Philippine Economic Zone Authority (PEZA), his administration is actively engaging with semiconductor firms to enhance investment opportunities in the country, as part of a strategy to position the Philippines as competitive player in the global semiconductor market.
In line with this, the government started strengthening ties with the United States to enhance semiconductor manufacturing and research in allied countries. In a recent 22- delegation US trade and investment mission to Manila led by Commerce Secretary Gina Raimondo, the President, said the country is ready to meet the expanding needs of high-technology industries.
President Marcos Jr. also invited US semiconductor firms to establish wafer fabrication facilities in the Philippines, highlighting the country’s readiness to support such investments through its “Build, Better, More” infrastructure program.
“With our standing proposition to the US semiconductor companies to invest in a laboratory-scale wafer fabrication facility in the Philippines, we can support the R&D and advanced assembly, packaging, and test requirements of US companies that are into
semiconductors and electronics manufacturing services,” the President said.
Among the EMS-SMS companies located in the ecozones nationwide is American semiconductor firm Onsemi which is located at the Mactan Economic Zone 1 (MEZ) in Lapu-Lapu City, Cebu. It is the region’s sole semiconductor manufacturing plant and has been at the forefront of advancing the Philippines’ semiconductor industry.
In November 2024, Onsemi Cebu recognized PEZA as a strategic partner in driving the expansion of its EliteSiC Growth portfolio. This product line focuses on high-performance SiC diodes, MOSFETs, and modules, which are essential for energy-efficient applications in automotive, industrial, cloud, medical, and IoT markets. General Manager Darshan Denamany said they want to position Onsemi as a leader in sustainable, high-performance semiconductor solutions.
The company’s investment in SiC technologies align with the global demand for more efficient energy storage systems, electric vehicles, and renewable energy solutions, a market expected to be worth around $4.16 billion in 2024 and over $12 billion by 2034. Denamany also highlighted the benefits of operating within a PEZA-managed ecozone: “PEZA provides a very strong foundation for us to be able to sustain and provide stability—whether it’s economic foundation, import-export, permits, social development of the entire ecosystem, or just the ability to grow.”
They make the lives of most of the companies here easier, and I would call them one-stop shop. Because of any problems that we have as a company in this zone, we can go to them and rest assured, there’ll be a solution. That’s the security that we have. This initiative is also in line with the vision of President Marcos, who is prioritizing sustainable industries and green technologies as part of his economic development strategy.
Furthermore, President Marcos’s administration continues to emphasize the importance of public-private partnerships to drive growth and innovation, and the Onsemi-PEZA partnership embodies this approach. Under President Marcos’s leadership, the Philippines is positioning itself to become a leader in high-tech industries, further supported by such forward-thinking collaborations.
PEZA Director General Tereso Panga said ecozones contribute significantly to regional development, with Cebu hosting six zones and ranking fifth among the wealthiest local government units in the country, based on data from the Philippine Statistics Authority.
“Ang mga ecozones ay pinamamahalaan ng PEZA upang mapababa ang cost of doing business and creating a positive environment by introducing ease of doing business practices. Eto ay para yumabong at lumaki pa ang mga negosyo sa loob nito. Sa kabilang bahagi naman, ang LGU kung saan naroroon ang Ecozone ay nakikinabang sa sumusunod na paraan: 1. Porsyento galing PEZA 2. Job Employment 3. ang pagtayo ng mga negosyo sa paligid ng mga ecozones/increase in local business opportunities. We can provide for the best location and the best business ecosystem for investors,” Panga added.
Denamany also attributed the company’s success to the skill and dedication of the Filipino workforce. “Our skilled Filipino team has been central to the EliteSiC project, and their contributions are foundational to what we’ve accomplished here,” he said.
He further described Filipino workers as resilient: “I don’t think there’s any country in the world that doesn’t have workers from the Philippines. Every part, every corner, every region has very hardworking Filipino workers… They are able to understand, adapt and deliver.”
Image: Lilibeth Pagobo
One of their hardworking employees is 53-years old Divina Bacus, an assembly line leader who has been with the company for 35 years.
“Tanda ko pa po, May 1989 po may ecozone na dito. Balita sa lugar namin na nag-emergency hiring daw po. Kaya madaling araw pumunta na kami dito, pumila sa labas ng gate, nag-abang ng alas-otso ng umaga para makapasok doon sa MEPZ Building.
Para makakuha ng priority number para maka-exam… Nag-umpisa na po akong magtrabaho dito sa Onsemi as a production operator. 17 years old pa lang po ako nu’n. Kaka-graduate ko lang ng high school.”
Factory worker Lilibeth Pagobo also shared the benefits of working at the MEZ: “Galing po ako ng probinsya. Para sa aking pamilya kailangan ko magtrabaho. Hanggang ito nagtagal hanggang 35 years. Sa sahod ko ngayon, nakapagtayo ako ng sariling bahay. Meron akong maliit na negosyo. Nakapagpa-aral ako ng aking kapatid at pati na sa aking mga anak,” she said.
Both women agree that their lives would have turned out differently if not for the ecozone.
Looking ahead, Onsemi is poised to expand its operations, leveraging the Philippines’ strategic advantages. Denamany believes that ecozones provide a competitive edge.
“I believe more and more companies will come into the ecozones because it provides a very solid foundation and shelter from all elements. That gives most companies our competitive edge to fight with other manufacturing giants from other countries.
With the trade disputes happening right now, the Philippines is one of the best places where you can set up a manufacturing company. If you can set it up in the economic zone, you already have the foundation. You already have the ecosystem over there supporting you to grow,” he said.
As Onsemi grows in the silicon carbide space, more employment opportunities were created. HR Manager Arlene Lim said they recently hired more than 60 operators and are planning to hire more next year.
The expansion is good news for Filipino workers like Bacus, whose son is a college freshman.
“Kung ako ang magdesisyon, gusto ko dito na rin magtrabaho ang anak ko kasi marami nang magagandang company dito sa Lapu-Lapu. ‘Di natin kailangan pumunta ng ibang
bansa,” she shared.
For his part, MEZ Administrator Emmanuel Cortero emphasized the importance of keeping families together by providing quality jobs locally. “For all the Filipino workers, rather than looking at employing themselves outside the country, they can just be with and within their family,” he said.
Create More and the Future of the Semiconductor Industry
In line with its commitment to attracting investments, the Marcos administration enacted the CREATE MORE law in November 2024. This policy extends tax incentives to businesses, making the Philippines one of the most attractive destinations for investors in Southeast Asia.
Panga explained that under the new law, investors can enjoy incentives for a longer period.
“Pinag-aralan natin, tayo na ang may pinaka-generous na incentives package for investors, so malaking attraction po ito sa mga mamumuhunan… [T]iningnan naming across ASEAN, ang length ng running ng incentives nila is from 5 to 15 [years]. ‘Yong sa Philippines, under the CREATE, it’s 4 to 17. Pagdating dito sa CREATE MORE, nagdagdag pa ng 10 more years, so imagine it’s 27 years of length of running of incentives. Wala nang tatalo sa atin diyan,” he noted.
Denamany said the said incentives are a big help to semiconductor firms. “Silicon carbide requires a lot of investment because [they are] very high energy products. We call it ‘wide band gap’ products, so you require the latest testers and equipment to be able to build it… So these incentives incentivize us as a company in the ecozone.”
Panga vowed to further strengthen the agency’s ecozones in the future. “We’re looking at a longer horizon where we will continue to be relevant and vibrant especially when it comes to spreading ecozone development. Because of that, we will continue to be a huge contributor to the economic development of the country,” he said. This aligns with President Marcos’s vision to create a competitive and sustainable business environment. Under his leadership, the government continues to attract global investment and stimulate economic growth, particularly in high-tech sectors. With the continued support of policies like CREATE and CREATE MORE, President Marcos’s administration ensures the Philippines remains a top destination for investors.
