August 7th, 2025
U.S. President Donald Trump has announced his intention to impose a 100 percent tariff on semiconductor imports from companies that do not invest in the United States. We reiterate this clarification for the public and the media. This is not a blanket tariff on all semiconductor imports. It is not directed at any specific country. It targets firms that choose not to support U.S.-based production.
In this context, we hope that media outlets and relevant stakeholders will emphasize that the top semiconductor producers operating in the Philippines already meet the conditions outlined by the Trump administration. These companies include Texas Instruments, Analog Devices, AmKor Technology, STMicroelectronics, and ON Semiconductor. They are either headquartered in the United States, operate manufacturing facilities in the United States, or function under U.S. licensing and regulatory control. Their Philippine operations are part of secure, vertically integrated global supply chains that serve U.S. industrial policy objectives.
In 2024, the Philippines exported approximately 882 million U.S. dollars worth of semiconductor devices to the United States. This figure is based on official trade data compiled by the Observatory of Economic Complexity. These exports represent a critical node in U.S.-bound technology value chains and contribute to both commercial continuity and strategic resilience.
We commend President Ferdinand R. Marcos Jr. for his measured and strategic approach to economic and foreign policy. His administration has pursued deeper bilateral engagement with the United States across defense, food security, and high-technology. Under his leadership, the Philippines has remained a stable and credible partner in sustaining global supply chains.
We recommend that Philippine trade and foreign affairs officials formally communicate to their U.S. counterparts that Philippine-based semiconductor exports already advance U.S. national and industrial objectives. Any overly broad or misapplied trade action that affects these operations would undercut shared goals. The United States has a declared interest in reducing dependence on Taiwan for semiconductor supply. The Philippines is a treaty ally under the Mutual Defense Treaty. It hosts U.S. military assets through the Enhanced Defense Cooperation Agreement. It offers a democratic, English-speaking, and technically skilled production base for trusted partners.
We also recommend that officials reinforce the goodwill underlying the Philippines’ current offer to reduce or eliminate tariffs on U.S. agricultural exports, including soybeans, wheat, and yellow corn. These offers remain under consideration and have not yet been formalized. In 2024, the Philippines imported more than 1.2 billion U.S. dollars worth of these commodities from the United States. If Philippine strategic sectors such as semiconductors are disproportionately affected by U.S. trade actions, it may be appropriate to reassess the balance of proposed concessions. A reciprocal and respectful approach to trade must be the baseline.
There is no immediate cause for alarm. But this is a moment for clarity, coordination, and early engagement. The Philippines is not merely a production site. It is a credible and long-standing partner in building a secure and resilient global technology system. That message should be delivered clearly and consistently.
Salceda Research will continue to monitor developments and support Philippine institutions in protecting the national interest.