Taiwan leads PEZA investments, eyes deeper tech ties
By Monsi A. Serrano
Taiwan emerged as the Philippines’ leading foreign source of investment approvals in economic zones during the first nine months of 2026, opening opportunities to deepen cooperation in semiconductors, artificial intelligence (AI), advanced manufacturing and other technology-driven industries.
Taiwan Ambassador to the Philippines Wallace Minn-Gan Chow highlighted the growing economic partnership between the two economies in his speech marking Taiwan’s 115th National Day, citing opportunities to build on existing trade and investment ties and expand cooperation in emerging technologies.
Data released by the Philippine Economic Zone Authority (PEZA) on October 6 showed that the agency approved ₱297.14 billion in investments from January to September 2026, with Taiwan ranking first among foreign sources, followed by the Netherlands, South Korea, Singapore and Indonesia.
The approved investments covered 223 new and expansion projects expected to generate US$8.94 billion in exports and create 33,331 direct jobs for Filipinos. The figures represent projected economic contributions from approved projects, rather than exports and employment already realized.
The investment approvals highlight the role of economic zones in expanding the Philippines’ production capacity and export base, while creating opportunities for foreign companies to establish or expand operations in the country.
Trade and investment momentum
Ambassador Chow said bilateral trade between Taiwan and the Philippines reached approximately US$7.2 billion in 2025 and had already exceeded US$7 billion as of August 2026.
He identified Taiwan as the Philippines’ seventh-largest export market and 10th-largest source of imports, underscoring the established commercial links between the two economies.
Beyond trade, Chow pointed to the Taiwan-Philippine Economic Program as a platform for deepening cooperation, particularly in industries where the two sides can complement each other’s capabilities.
Taiwan brings advanced manufacturing technologies, established industrial supply chains and expertise in energy engineering. The Philippines, meanwhile, offers a young and skilled workforce, as well as land and energy resources that could support industrial expansion.
Chow identified semiconductors, AI, cold-chain logistics, drones and other emerging technologies as areas where closer collaboration could create opportunities for both economies.
He also emphasized industrial upgrading and human-resource training, highlighting the importance of developing local capabilities alongside investment growth. These areas of cooperation could help the Philippines strengthen its industrial base and prepare Filipino workers for the requirements of increasingly technology-intensive industries.
Semiconductors and AI offer opportunities
Taiwan’s established position in the global semiconductor industry provides a potential foundation for expanding technology cooperation with the Philippines, particularly as demand for advanced computing and AI-related technologies grows.
Chow stressed the importance of semiconductor manufacturing to the development of AI and other advanced technologies, describing Taiwan as an indispensable part of the global technology ecosystem.
For the Philippines, closer engagement with Taiwanese companies could open opportunities to participate more deeply in technology-related supply chains, develop specialized workforce skills and attract investment into higher-value industrial activities.
However, converting these opportunities into lasting economic gains will depend on translating investment approvals and interest into operating projects, developing the skills required by advanced industries and ensuring that local businesses and workers can participate in the resulting economic activity.
Chow said Taiwan would continue working with the Philippines to advance industrial upgrading, workforce training and cooperation in emerging technologies.
The partnership also forms part of Taiwan’s broader New Southbound Policy, which seeks to deepen economic and other forms of engagement with partners across the region.
Chow expressed confidence that cooperation between Taiwan and the Philippines would continue to expand, citing their complementary economic strengths and potential to generate shared prosperity.
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