Manila:Philippine merchandise exports have surged to a record USD64 billion in the first eight months of 2026, as the government intensifies its efforts to attract investments in higher-value sectors such as chip design, engineering, and research.
According to Philippines News Agency, Executive Secretary Ralph Recto, who chairs the Semiconductor and Electronics Industry Advisory Council, reported that electronics exports reached USD37.1 billion from January to August, marking a 26.2 percent increase compared to the same period last year.
Recto emphasized the country's ambition to expand beyond manufacturing and assembly, driven by the growing global demand for semiconductors and artificial intelligence infrastructure. He highlighted that investors are increasingly viewing the Philippines as an attractive destination for chip design, engineering, research, and innovation.
The Philippine Statistics Authority revealed that merchandise exports in August alone hit USD9.1 billion, the highest monthly level in 35 years, representing a 27.8-percent increase from the previous year. Electronics exports contributed USD6.2 billion, accounting for 68 percent of the total.
Recto pointed out that the rising demand for AI, semiconductors, and data centers could create more opportunities for Filipino workers, engineers, and businesses. The Semiconductor and Electronics Industries in the Philippines Foundation Inc. has revised its electronics export growth forecast for 2026 to 10 percent, anticipating about USD54 billion, driven by demand for AI and data-center infrastructure.
A notable investment plan includes Toshiba's multi-billion-peso expansion of its Philippine operations over the next three years, aiming to boost the production of high-capacity hard disk drives for data centers, which is expected to generate approximately 3,000 jobs.
To maintain growth, the industry council has introduced a roadmap targeting USD110 billion in annual electronics exports by 2030. The plan seeks to increase the Philippines' share of global semiconductor assembly, testing, and packaging from 4 percent to 7 percent, while capturing 4 percent of the global electronics manufacturing services market. The development of an integrated circuit design industry could further contribute an additional USD2 billion to USD3 billion in annual export receipts.
The government is also heavily investing in the Luzon Economic Corridor, connecting Subic, Clark, Metro Manila, and Batangas, to draw investments in advanced manufacturing, logistics, energy, transport, and digital infrastructure. This corridor aims to generate up to one million jobs, including 130,000 jobs from a 1,600-hectare technology and advanced manufacturing hub at New Clark City in Capas, Tarlac.
Additionally, the Board of Investments is advancing the Philippine Technology Corridor to link industry hubs nationwide, including chip design in Metro Manila, advanced manufacturing at New Clark City, critical minerals in Mindanao, and artificial intelligence infrastructure in Batangas.
