The Philippine government plans to develop a workforce of 128,000 engineers and technicians by 2028 to compete with semiconductor manufacturing giants like Taiwan and South Korea.

Employing over 3 million workers, the sector contributes nearly 20% to the nation’s GDP, according to the Semiconductor and Electronics Industries in the Philippines Inc.

Recently, the government announced plans to elevate domestic production capabilities, focusing on automation and cultivating a skilled engineering workforce.

Krista Yu, an industrial economics expert at De La Salle University, said, however, that many assembly tasks are increasingly subject to automation, leading to a fundamental shift in workforce needs.

The Philippine unit of Dutch chipmaker Nexperia has begun laying off employees, cutting approximately 500 positions since September 2023, citing poor market conditions and increased automation as key factors.

This trend disproportionately impacts low-skilled workers, particularly women, raising concerns about significant social consequences amid these industrial advancements.