The Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI) said the sector is noting an increasing trend despite an initial target of flat growth.
But Wilda Calderon, chair of SEIPI Association of Logistics Managers, said at the Future of Logistics 2024 forum in Makati City last May 29 the industry needs support from the government to make this higher growth possible.
“We have lots of support systems that we would like to optimize the benefits of working with them,” Calderon said.
She said the country “needs to make improvements to the challenges” such as the barriers to doing business but did not specify.
Her comment comes after the Philippine Economic Zone Authority (PEZA) reiterated the Philippines is now eyeing about $100 billion prospects for investment deals from the US and Japan into the electronics industry particularly EMS-SMS, manufacturing and supply chains, clean energy, agri-business, rail, and port infrastructure development.
SMS is the production of electronics devices’ semiconductors and components — from design to assembly. EMS involves the manufacture of electronics products for other companies on a contract basis, including circuit boards, electronics assemblies, and complete systems.
At the forum, PEZA director-general Tereso Panga said another investment opportunity for the Philippines in electronics is being part of the supply chain under the CHIPS Act of the US.
CHIPS or the Creating Helpful Incentives to Produce Semiconductors and Science Act is intended to lure microchip manufacturing back to the US after several decades of individual companies offshoring the technology.
In response to SEIPI’s concern, Panga said government acknowledges that enhancing the country’s ease of doing business is crucial to addressing the pain points for investments.
He called for government and private sector collaboration in addressing this challenge.
Exports of electronic exports in 2023 fell 9.2 percent in 2023 to $41.9 billion.
In March, these increased 4.36 percent to $3.87 billion, which is 63.12 percent of the $ 6.13 billion in total Philippine exports.
