US commerce secretary Gina Raimondo has called for a sharp increase in capacity for assembling, testing and packaging semiconductors in the Philippines, as Washington seeks to bolster rapidly growing defence co-operation with its oldest Asian ally.The Philippines has 13 so-called back-end semiconductor plants that specialise in assembling, testing and packaging chips manufactured elsewhere.

“Let’s double it,” Raimondo said on Tuesday during a US trade and investment mission to the Philippines. The appeal followed pledges of $1bn of fresh investment in the country from companies including Microsoft and United Airlines that were part of a 22-strong business delegation.

The push comes as government officials and analysts warn that Washington must add more economic engagement to its military and security co-operation with Asian partners if it is to compete successfully with China in the region.