The Semiconductor and Electronics Industries of the Philippines Inc. (SEIPI) is optimistic of meeting the 7-percent export growth target this year, following an 8.9-percent increase in the first quarter.
SEIPI considers this as a recovery following a full-year contraction of 8.7 percent in 2020.
But the group remains cautious due to the global shortage of wafers, the basic raw material in the production of semiconductor products. The Philippine does not have its own wafer fabrication.
The shortage, caused by long lead times of wafer processing equipment, could take at least six months, industry executives said.
According to SEIPI, this shortage will result to lost opportunity to increase its 7-percent growth projection.
Data from the Philippine Statistics Authority showed exports of electronics rose 25 percent to $3.6 billion in March from $2.88 billion in the same month in 2020.
March figures pushed first quarter exports to $9.83 billion, up 8.3 percent from $9 billion in the same period in 2020.
SEIPI continues to feel the impact of the new coronavirus disease 2019 and the restrictions enforced to contain its spread.
It has advocated the inclusion of electronics workers in the priority A4 category or essential workers in the face of fear and hesitance to getting vaccinated as well as uncertainty of the schedule of rollout.
SEIPI said limited movement of expatriates and foreign technical support has also hampered r new product and technology investments in the electronics sector.
Additional protocols like logistics, employee shuttle and utilities necessary to prevent the spread of the virus have increased high operating costs of electronics firms.
SEIPI said operations-wise, companies continue to experience delays in release of shipments due to system glitches as well as cases of infections in partner-firms.
