US investments have played a crucial role in boosting the Philippine economy, particularly in sectors like automotive, energy, and infrastructure. However, it’s in the electronic manufacturing industry where these investments have truly made a significant impact, creating tens of thousands of jobs and generating billions of dollars in export revenues. Among the many foreign investors in this industry, one company stands out: Texas Instruments (TI).
TI is one of the top foreign investors in the Philippines, consistently recognized for its contributions. As a member of the Philippine Economic Zone Authority (PEZA), TI has received the prestigious “Billionaires’ Award” multiple times. This award is given only to companies that export goods or services worth over $2.5 billion, a significant portion of the Philippines’ total exports, which reached $103 billion in 2023. To put it into perspective, TI’s exports alone represent about 2.5% of the country’s total exports.
TI’s influence in the Philippines isn’t new. They’ve been receiving this award since 2013, when the Philippines’ total exports were only $55 billion. Back then, TI contributed over 5% to the nation’s export industry. This highlights how crucial TI has been to the Philippine economy, especially after the departure of another major player, Intel.
TI first invested in the Philippines in 1979, setting up their first assembly and test facility in Baguio City. They were attracted by Baguio’s natural beauty, educational institutions, and what was then a strong infrastructure. However, by the 1980s, the city’s infrastructure began to decline. TI responded by investing in self-sufficiency, ensuring uninterrupted operations by installing a 10.5-megawatt generator, digging water wells, and securing liquid nitrogen storage.
Despite these challenges, TI continued to pour millions into their Baguio facility, which quickly became the country’s largest exporter. In 1993, TI shipped nearly half a billion dollars’ worth of chips and electronic parts to various markets worldwide. By then, TI’s investments totaled over $230 million, with a workforce of 2,000 employees.
The 1990s brought new challenges, including natural disasters. A major earthquake in Baguio City severely impacted the region’s infrastructure, but TI persevered. The company demonstrated that despite the Philippines’ challenges, it was possible to overcome them by leveraging the country’s highly skilled labor force. TI hired college graduates to run their equipment, with 50% of their production staff holding college degrees.
Over time, the workforce in Baguio transitioned to producing more complex products and even designing parts of chips and manufacturing processes. By 1995, TI planned to invest an additional $105 to $120 million to boost their capacity by 30%. By 1997, their export value had reached $1.4 billion, employing over 2,150 people and encouraging their sub-suppliers to set up shop in the Philippines, further boosting the local economy.
By 2003, TI’s total export value had doubled to over $3 billion, making them the largest exporter in the Philippines. Among their products, TI produced 80% of the digital signal processing chips used in Nokia mobile phones.
In 2007, TI embarked on its biggest project yet: a $1 billion investment in a modern test and assembly site for semiconductor chips in the Clark Freeport Zone. The facility opened in 2009, spanning 77,000 square meters and employing around 3,000 workers. This project was expected to double TI’s capacity in the region.
The Philippines’ electronic manufacturing industry faced its biggest challenge in 2009 with Intel’s exit from the country. Intel’s departure was a significant blow, as they were one of the largest contributors to Philippine economic zone exports, with an export value of $5.8 billion in 2008. Intel’s exit underscored the need for TI to step up, which they did by continuing to invest and grow their operations in the Philippines.
Today, TI remains a leader in the Philippine electronic manufacturing industry, contributing to job creation, technological advancements, and fostering an innovation-driven society. Their latest investment, announced in August 2023, involves over $1 billion in expansion projects for their two facilities in the Philippines. While specific figures about TI Philippines’ exports and revenues are no longer disclosed, their impact on the industry and the economy is undeniable.
Texas Instruments has arguably made the most significant foreign investment in the Philippines, shaping the country’s electronic manufacturing industry and driving economic growth. Their story is a testament to the enduring partnership between the Philippines and the US in building a brighter future together.