27/08/2026
๐ปโก NEW DISCUSSION PAPER: Semiconductor Industry Development in Taiwan and the Philippines ๐๐
Why did Taiwan become a global semiconductor powerhouse while the Philippines remained largely confined to low-value assembly, testing, and packaging (ATP)?
We are pleased to announce the release of UP CIDS Discussion Paper, "Semiconductor Industry Development in Taiwan and the Philippines: Comparative Insights for the Global South". Authored by Lianne Angelico C. Depante and Kirsten Lianne Mae C. Dedase, this study is published under our Political Economy Program (PEP). It provides a rigorous comparative analysis of how state policy, institutional frameworks, and industrial strategies shaped the divergent trajectories of two economies that started at a similar footing in the late 1960s.
๐ Key Highlights from the Paper:
๐ฑ A Tale of Two Ecosystems: While Taiwan built an integrated multi-billion-dollar ecosystem spanning design, fabrication, and advanced packaging, the Philippines remains structurally constrained by its heavy reliance on imported wafers and a lack of domestic fabrication capacity.
โ๏ธ Public R&D and Risk-Taking: The study contrasts Taiwanโs adaptive, risk-tolerant public R&D institutions (such as ITRI) that co-invested with the private sector against the historically passive and risk-averse approach of Philippine public R&D bodies.
๐๏ธ Industrial Governance & Strategy: It examines how centralized bureaucratic planning, expert advisory mechanisms, and integrated private-sector coordination in Taiwan fostered upgrading, unlike the fragmented institutional landscape historically seen in the Philippines.
๐ฆ Clustering & State-Academia Synergy: The paper highlights the success of Taiwan's Hsinchu Science Park in linking research institutes, universities, and industries, versus the more fragmented, enclave-like nature of export processing zones.
๐ก Human Capital & Policy Directions: The authors underscore the necessity of productivist education reforms, industry-aligned TVET, and leveraging the diaspora ("brain circulation") to move up the technological ladder.
By examining these historical lessons, the paper offers actionable policy recommendations for developing countries striving to transition from low-value processors to active producers in the high-tech global economy.
๐ Download the full discussion paper for FREE:
https://cids.up.edu.ph/download/semiconductor-industry-development-taiwan-philippines-comparative-insights-global-south/
