The Philippines is trying to enlist Taiwanese chip giants in an effort to expand in semiconductors, a bid to catch up with its neighbors who are emerging as significant suppliers in the industry.

In the first half of 2024, aggressive stockpiling by terminal manufacturers led to an early depletion of demand, resulting in a lackluster peak season for the display panel industry. This downturn significantly impacted Taiwanese polarizer suppliers, such as BenQ Materials and Cheng Mei Materials Technology, which reported revenue declines due to sluggish market conditions.

Following the passage of significant legislation such as the CHIPS and Science Act (CHIPS Act) and the Inflation Reduction Act (IRA) in 2022, the United States has intensified its efforts to contain China through technology policy. In addition to subsidizing domestic chip production, the United States is also focusing on funding advanced technology R&D, which will enhance the depth and breadth of information and communication technology (ICT) in the country, thereby widening the technological gap with China.