Electronics exports may expand 10% this year

MANILA, Philippines — The semiconductor and electronics industry expects its exports to grow by 10 percent this year as global demand continues to rise.

Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI) chairman Glenn Everett said during the group’s general membership meeting yesterday they are forecasting a 10 percent growth this year, based on local and global trends and conditions.

“The board of trustees are generally optimistic about our growth in 2022 but they note, it depends very much upon the improvements to inbound and outbound logistics flows, to the health of the supply chain, health of the population and to the continuing opening of the country,” he said.

SEIPI estimates the country’s electronics exports reached around $45 billion last year.

Everett said new innovations in the semiconductor and electronics industry are seen to create opportunities for the country.

“If you look at our companies, most of our companies in SEIPI have been here for a while. There aren’t too many new investments, new companies investing and I am hopeful that as these new technologies come up, there can be new opportunities for the Philippines to attract investment and bring these new technologies and invest into this already vibrant semicon and electronics space,” he said.

He said emerging technologies that continue to develop at a remarkable speed include metaverse or a combination of virtual reality, augmented reality and video in a digital universe, automotive artificial intelligence (AI), advanced driver assistance systems, augmented reality, connected cars, 6G, robotic process automation, as well as financial technology.

Philippine Economic Zone Authority (PEZA) director general Charito Plaza said the investment promotion agency also wants to see more investments being made in the electronics industry.

“We are hoping to attract new and more investors such as Americans in the sectors of manufacturing, computers, semiconductors, technology advancements, AI, cybersecurity among others,” she said.

She said the semiconductor and electronics industry is the biggest sector in PEZA-approved investments.

Plaza said investments in the semiconductor and electronics industry reached P18.161 billion from January to September last year, accounting for 34.67 percent of the total investments in PEZA for the period.

Exports generated by semiconductor and electronics companies in PEZA zones amounted to $21.377 billion, and the sector employed 400,867 workers as of September last year.

As part of efforts to support the electronics firms in ecozones, Plaza said the PEZA is in the process of reengineering its frontline services to further improve processing time, eliminate redundant requirements and reduce cost of compliance of clients.

She said forms and permits for the facilitation of visas, building permits, and movement of ecozone cargoes are also being automated.