"Philippine chipmakers are embracing automation — and leaving low-skilled workers behind", 8 October 2024

The Philippines has long been a hub for semiconductor manufacturing services — largely assembly, testing, and packaging. Now, the government is keen to go up the value chain with increased automation and an army of young engineers. That means lower-skilled workers, many of them women, are getting left behind.

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Workers are already feeling the impact: At the Philippine unit of Nexperia, a Dutch chipmaker owned by Chinese company Wingtech Technology, about 500 workers have been laid off since September 2023. The company, which makes basic semiconductors such as diodes and transistors, cited poor market conditions and a move toward greater efficiency. Workers say the layoffs were a result of increased automation at the plant.

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The layoffs were a result of “specific capacities that ended in 2023, and current processes and market conditions,” a spokesperson for Nexperia in Cabuyao city, about 30 miles south of Manila, told Rest of World.

“The retrenchment, whilst regrettable, is in full compliance with local laws. Nexperia is committed to supporting those affected during this transition, and will be providing assistance to help them through this period,” they said.

The company declined to comment on plans for automation, and if it will result in further layoffs.

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