On April 20, 2026, the Philippine Department of Finance (DOF) announced that ON Semiconductor Corp., a leading U.S.-based semiconductor manufacturer, has committed to expanding its manufacturing operations within the country. The announcement followed a meeting between Finance Secretary Ralph Recto and executives from onsemi to discuss the company’s long-term strategic footprint in Southeast Asia. The expansion is set to take place at onsemi’s existing facilities in Carmona, Cavite, and Tarlac City, which are integral to the company’s global back-end manufacturing network.
According to the Department of Finance, the expansion project is designed to increase the capacity of onsemi’s assembly and testing operations. These facilities produce critical components for the automotive and industrial markets, including power management devices and sensors used in electric vehicles and automated industrial systems. Secretary Recto stated that the move reinforces the Philippines' status as a premier destination for high-tech manufacturing and semiconductor services. While the specific investment amount for this phase was not disclosed, the DOF noted that the expansion would involve significant upgrades to existing infrastructure and the integration of advanced automation technologies.
The Philippine government is supporting the expansion through the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. This framework provides fiscal incentives and streamlined administrative procedures for companies making strategic investments in the electronics sector. Secretary Recto emphasized that the government is working to provide green lane certifications for onsemi’s projects to ensure the timely implementation of facility upgrades. The DOF also highlighted that the expansion aligns with the national goal of moving up the semiconductor value chain from basic assembly to more complex testing and packaging processes.
Onsemi, which reported annual revenue of approximately $8.25 billion in its most recent fiscal year, has been undergoing a global manufacturing transition under the leadership of Chief Executive Officer Hassane El-Khoury. The company’s strategy involves focusing on high-growth areas such as silicon carbide and intelligent sensing. The Philippine operations are among onsemi’s largest globally by volume, and the decision to expand locally follows a period of evaluation regarding the company’s internal manufacturing capacity versus external foundry reliance. The company has maintained a presence in the Philippines for over two decades, employing a substantial local workforce.
The Department of Finance and the Philippine Economic Zone Authority (PEZA) will oversee the regulatory aspects of the expansion. Electronics remain the Philippines' most significant export category, and the expansion of a major player like onsemi is expected to contribute to the overall growth of the sector’s export value. The DOF stated that it remains committed to maintaining a competitive tax environment and improving ease of doing business to attract further investments from the global semiconductor industry. This development is part of a broader trend of U.S. technology firms diversifying their supply chains and increasing their manufacturing presence in the Indo-Pacific region.