The Philippines could attract more semiconductor investment as demand for artificial intelligence (AI) chips grows and manufacturers expand production across Asia Pacific, according to a report by FedEx and Frost & Sullivan.

The report identifies the country’s assembly, packaging, and testing operations as a base for capturing that growth. Federal Express Corp. (FedEx), one of the world’s largest express transportation companies, said the Philippines has a skilled workforce and a network of global manufacturers and local suppliers supporting these activities.

“The Philippines has decades of experience and a strong talent base in semiconductor manufacturing,” said Garrick Thompson, managing director, FedEx Philippines.. The opportunity now is to build on these strengths as the industry enters a new phase driven by AI, advanced computing and increasingly distributed supply chains.”

Semiconductors are the chips that allow computers, vehicles, and electronic devices to process information. After chips are manufactured, they need to be packaged and tested before they can be used in finished products. These are areas where the Philippines already participates in global production.

The report, “From AI to EVs: How APAC Semiconductors Drive the Global Innovation Map,” noted the opportunities as companies spread manufacturing and sourcing across more locations.

In a FedEx survey at SEMICON Taiwan 2026, 35% of respondents expected their companies to expand manufacturing into additional Asia Pacific markets over the next three years. Another 25% planned to increase or diversify sourcing within the region or globally.

Those figures indicate industry plans across markets rather than investment commitments to the Philippines. However, the report identifies the country’s existing manufacturing base as an advantage in competing for new projects.

Philippine economic zones continue to attract electronics and advanced manufacturing projects, the report said. Government efforts are focused on developing activities such as research, engineering, chip design, and advanced manufacturing, which would broaden the country’s role beyond its established operations.

AI and high-performance computing are the fastest-growing drivers of semiconductor demand identified in the report. More than 2,000 new data centers are expected to be built worldwide between 2026 and 2035.

That expansion also requires servers, networking equipment, cooling systems, and power solutions. Components often pass through manufacturing, assembly, and testing facilities in several countries before reaching a data center.

For Philippine manufacturers, reliable shipping and connections to overseas suppliers and customers will matter alongside production capability.

The survey found that 44% of respondents considered faster international shipping the most important capability when choosing logistics partners over the next three years. Geopolitical disruption was the leading growth challenge for 30%, ahead of operating costs and cross-border trade and customs complexity.

FedEx said its Clark gateway, near industrial and economic zones in Central Luzon, connects Philippine businesses to its international network for moving high-value, time-sensitive shipments.

The survey covered 478 semiconductor industry participants from corporations, industry associations, and research institutes across Asia Pacific, Europe, and North America. It was conducted Sept. 2-4, 2026, in Taipei. Its findings provide regional context for the Philippine opportunity, rather than a forecast of local investment or jobs.

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