Local chip industry braces for US tariffs

The Philippine semiconductor industry is pushing for the expansion of its export market as it braces for a "devastating" impact from the proposed 100-percent tariffs on foreign-made semiconductors entering the United States (US).

- BY DEXTER BARRO II

US President Donald Trump announced last week that he will impose tariffs on semiconductor imports, with exceptions for companies that are manufacturing in the US or have committed to doing so.

The Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI) is raising the alarm bell over the new levy as it could lead to a drop in investments, potentially slowing down economic growth.

SEIPI President Danilo Lachica said semiconductors are exempt from any tariff due to the US Trade Expansion Act of 1962, shielding the local industry from America's imposition of 19 percent tariffs on Philippine exports.

"So from 0 percent to 100 percent, that's really scary. It's really going to impact the Philippine semiconductor and electronics industry," he said in a television interview.