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Philippine Executive Secretary Ralph Recto rallied members of the Association of Southeast Asian Nations to capitalize on their combined strengths to boost the region’s semiconductor and electronics industry
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Recto, chair of the country’s Semiconductor and Electronics Industry Advisory Council, said ASEAN members must take advantage of the current global technological race, making sure that it translates to better lives for its people
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He stressed that ASEAN’s semiconductor success must be measured by the decent jobs, stronger local businesses, and sustainable communities it creates, alongside gains in production, exports, and investments
Philippine Executive Secretary Ralph Recto rallied member states of the Association of Southeast Asian Nations (ASEAN) to capitalize on their combined strengths to boost the region’s semiconductor and electronics industry and take advantage of the current global race in technological advances to further improve the lives of its people.
“This race is more than technology. It is about jobs, investments, innovation, economic security, and even national security. And I firmly believe that ASEAN can win a much bigger share of that future, only if we build it together,” Recto said in a speech during the ASEAN Semiconductor and Electronics Forum 2026 hosted by the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) on October 26.
Recto, who chairs the Semiconductor and Electronics Industry Advisory Council, noted that “chips are the new infrastructure.”
“Roads and ports once decided which economy grows. Today, it is semiconductors and electronics. They sit inside our phones, our hospitals, our cars, and our data centers. They will determine how far and how fast economies grow,” he said.
Recto said the region must capitalize on its combined strengths in manufacturing, technology, research, and skilled labor to become a major global hub for semiconductor production and innovation.
Creating a supply chain ecosystem
“We have a unique competitive advantage. More than uniformity, complementarity is the best trademark of ASEAN. For decades, we have shown the world that we are a region that knows how to bring our different strengths together,” he said.
He expounded, citing for example how Singapore has advanced manufacturing research and finance, while Malaysia has deep expertise in assembly, testing and packaging. The Philippines, meanwhile, has established capabilities in semiconductor and electronics manufacturing, particularly assembly, testing, and packaging, alongside growing capabilities in integrated circuit design. Vietnam and Thailand have strong electronic manufacturing capabilities, while Indonesia brings critical mineral resources, Laos has hydropower, and Brunei is gifted with energy resources.
Cambodia, Myanmar, and Timor Leste, meanwhile, have the talents and industrial experience.
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“If we just link these strengths together, ASEAN becomes one integrated ecosystem for production and innovation,” Recto said.
“So, when an investment chooses one ASEAN country, it taps into the capabilities of the entire region. That is our powerful preach to the world. Invest in one and you gain access to all. This matters because the world is being redrawn by geopolitical tension, technological disruption, climate risk, and shifting capital. We cannot remove uncertainty from the world. But we can give investors greater certainty about ASEAN. So, we must try to be the region where companies can diversify with confidence, where supply chains move without friction, and where travel is abundant,” Recto explained.
Intra-ASEAN trade
SEIPI president Dan Lachica, in a separate statement during the forum, said ASEAN is an important market for the Philippines’ electronics industry. Based on data from the Philippines Statistics Authority from January to August 2026, the Philippines recorded approximately $39.8 billion in electronic exports, of which $6.3 billion went to the ASEAN market, accounting for 16% of the total.
On the import side, the Philippines recorded $32.97 billion in electronic imports, with $4.2 billion spruced from ASEAN, representing 12% of total electronic imports.
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Recto also further highlighted what the Philippines can offer.
Recto said the country’s electronics and semiconductor sector is already a major engine of the economy. The country’s merchandise exports hit an all-time high of US$64 billion in the first eight months of 2026. In August 2026 alone, exports reached a 35-year high of $9.11 billion, driven by electronic products, which posted a $2.32 billion year-on-year gain and at $6.20 billion, accounted for 68.1% of total exports during the month.
Recto said this means investors “no longer see the Philippines only as a place of assembly”, but as “a strategic partner to design chips, engineer, research, and to innovate.”
He said this is why the government has launched the Philippine Semiconductor and Electronics Industry Roadmap, which targets $110 billion in annual exports by 2030.
Pitching the Luzon Economic Corridor
He also invited ASEAN investors to explore the Luzon Economic Corridor, wherein he said the government is building an entire ecosystem of world class infrastructure, efficient logistics, reliable energy, digital connectivity and highly capable talents “to come together to power the economy of the future”, including a proposed 1,600-hectare technology hub in New Clark City that will serve as an industrial anchor for innovation.
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Recto also highlighted the Philippines’ young, increasingly tech-oriented workforce as a major advantage in attracting semiconductor investment.
“Our median age is only 27 years old. We have a young, English-speaking, tech-savvy workforce hungry to learn,” he said.
In line with President Ferdinand Marco, Jr.’s agenda to develop a globally competitive workforce, the government is strengthening engineering education, technical training, industry certification, and partnerships with technology companies.
“Our goal is to connect talent to technology, technology to investment, and investment to jobs,” Recto said.
He urged ASEAN countries to launch similar joint initiatives, including cross-border training programs, research partnerships, and supplier development projects that would help smaller businesses join global production networks.
“Let us develop suppliers across borders, train the next generation of engineers together, and bring more ASEAN enterprises into global value chains,” he said.
Recto stressed that ASEAN’s semiconductor success must be measured by the decent jobs, stronger local businesses, and sustainable communities it creates, alongside gains in production, exports, and investments.
He cited the Philippine Carbon Market Policy Framework as part of the current administration’s push to encourage low-carbon investments, underscoring that technological progress must deliver lasting benefits for people and the environment.
Moreover, Recto said ASEAN has an opportunity to become not only a major global manufacturing center but also a region where technological progress creates lasting economic benefits for its people.
“Let us all make sure that our measure of success is not simply about how many chips ASEAN produces. But how much opportunity those chips create for our citizens, the people of ASEAN,” he said.—Roumina Pablo
