The Philippine Economic Zone Authority (PEZA) recently concluded an investment mission to Taiwan, co-organized with the Manila Economic and Cultural Office (MECO) and the Philippine Trade and Investment Center (PTIC) in Taipei.
The Philippine Investment Forum, attended by over 150 participants, highlighted investment opportunities in science, innovation, and technology-driven industries. It also included a business-to-business (B2B) component to facilitate business discussions, with participation from PEZA’s industrial park operators.
PEZA and PTIC-Taipei generated leads in areas such as smart transportation, electric vehicles, smart city development, semiconductor packaging and testing, energy, and aquaculture. These opportunities emerged from one-on-one meetings held in Taipei, Kaohsiung, and Pingtung.
The mission also allowed discussions with current PEZA locators on ways to streamline operations and expand their Philippine businesses. Participating companies included Advanced Semiconductor Engineering (ASE), Sunonwealth Electric Machine Industry Co. Ltd. (Sunon Group), Kinpo Electronics, Acbel Polytech Inc., and Yeng Hsing Co. Ltd.
PEZA and PTIC-Taipei explored potential partnerships with Kaohsiung Linhai Industrial Park, represented by Sophia Yu, Director of the Taiwan Ministry of Economic Affairs’ Bureau of Industrial Parks, and Peter Lai, Chairman of the Kaohsiung Linhai Industrial Park Association. Covering 2,225 hectares, Linhai Industrial Park is a major industrial hub in Taiwan. The visit enabled PEZA to study Linhai’s best practices and explore areas of collaboration. To conclude the visit, the Bureau of Industrial Parks also provided a tour of Jolab, a leading Taiwanese cosmetics and skincare manufacturer.
Philippine Investment Forum in Taipei
Reflecting recent economic policies in the Philippines, including the Luzon Economic Corridor (LEC) and CREATE MORE initiatives, PEZA, PTIC-Taipei, and MECO organized the Philippine Investment Forum in Taipei on Oct. 22, 2024.
Among the attendees were MECO Chairperson Cheloy V. Garafil, PEZA Director General Tereso O. Panga, Energy Undersecretary Dr. Rowena Cristina L. Guevara, PTIC-Taipei Trade Representative Anthony B. Rivera, and Philippine industrial park operators.
PTIC-Taipei launched a business matching program to foster one-on-one meetings between the Taipei business community and Philippine industrial park representatives, including Aboitiz InfraCapital, First Philippine Industrial Park, Philtai Industrial Park, and Science Park of the Philippines.
In her welcome remarks, Garafil emphasized the Philippines’ growth, projected between 6.5% and 8% until 2028, and encouraged Taiwanese industries to join this growth trajectory.
Panga noted Taiwan’s significant role in the Philippines’ economic growth, citing Taiwan’s New Southbound Policy, which positions the Philippines as a strategic gateway to ASEAN. He highlighted the robust cooperation in trade, investment, technology, tourism, agriculture, and education, bolstered by the bilateral investment agreement.
Rivera, also Director for Commercial Affairs, described the forum as a strategic platform for updating the Taiwan market on Philippine developments. He encouraged Taiwan companies to consider the Philippines for manufacturing expansion and talent development to meet growing demands for technical skills, generating more local jobs.
PTIC-Taipei also organized a visit to Taitronics, where the PEZA delegation and Philippine industrial park representatives received insights into the Artificial Intelligence of Things (AIOT), smart city innovations, and advanced building management systems.
Investor Servicing and Lead Facilitation
PEZA’s Taiwan engagements included a meeting with Advanced Semiconductor Engineering (ASE), the world’s leading provider of semiconductor assembly and testing services. ASE, employing 30,000 people in Kaohsiung, including many Filipinos, recently expanded in the Philippines by acquiring Infineon’s facility at Gateway Business Park – Special Economic Zone in Cavite in early 2024. PEZA and PTIC-Taipei are working on talent development initiatives aligned with Taiwan’s 2+4 Industrial Policy to strengthen the Philippines’ position in the global semiconductor market.
In Kaohsiung, PEZA officials met with the Sunon Group, a top-three global manufacturer of thermal and cooling solutions. Sunon, holding a 20% global server market share, inaugurated its 13-hectare plant in the Hermosa Ecozone Industrial Park in Bataan in February 2024. This facility, Sunon’s second headquarters, focuses on cooling fan module production and establishing a research and development center. With an initial investment of USD 35 million, the project is expected to create 7,700 jobs within three to five years, boosting Philippine exports to the U.S., Europe, Japan, India, and China.
Aligned with President Ferdinand R. Marcos Jr.’s food security goals and import substitution efforts, PEZA is pursuing opportunities with an aquaculture company based in Pingtung County, renowned for sustainable grouper farming. Policy support and legal frameworks are under discussion, with potential to establish a sustainable seafood supply chain for the Philippines through cooperative farming models.
As of September 2024, PEZA has registered 83 Taiwanese companies, generating PHP19.034 billion in investments and employing 27,000 Filipinos. Taiwanese registered business enterprises (RBEs) in the Philippines engage primarily in electronics and semiconductor manufacturing, fabricated metals, rubber, plastics, paper products, and IT-BPM services.
Notable Taiwanese locators in the Philippines include Sercomm, Sunon, Kinpo, Acbel, Leader Electronics, Tong Hsing, Enlin Steel, Philake Metal, and Chimei.
