With a return of optimism, the Semiconductor and Electronics Industries of the Philippines Inc. (SEIPI) Foundation aims to grow by 10 percent in revenues this year, according to its chairman Glenn Everett.
Dan Lachica, SEIPI president, said the industry could exceed $45 billion this year, surpassing pre-pandemic level of $43.3 billion.
SEiPI has upgraded the growth projection originally set at 7 percent.
Everett cited global and local trends and conditions point to recovery particularly on emerging technologies like quantum computing which is being applied to vaccine development, banking fraud detection; artificial intelligence which is extending its lead in processing, speech recognition, navigation apps and a host of other areas; cutting-edge computing devices capable of virtual reality and augmented reality; among others.
But Everett told the general membership meeting of SEIPI “growth in 2022 depends very much on improvements to inbound and outbound logistics flows and to the ongoing opening of the country.”
Lachica said while the Philippine semiconductor electronics industry is still challenged by the ongoing pandemic, “we can say with confidence that the industry has emerged stronger due to our strategies and combined efforts in addressing disruptions.”
“We are experiencing growth, and we can continue working together to sustain this rebound.”
At the end of September, electronics exports totaled $34 billion, or 61 percent of the $55.68 billion of total exports.
Lachica said SEIPI will seek funding and donation for a planned wafer fabrication which will provide the backend of the electronics sector.
“The big challenge is it requires billions of dollars to develop nanotechnology wafer fab… even for a lab-scale,” Lachica said.
SEIPI is leading a campaign to reduce importation in the industry. Imports of the sector hit $2.8 billion in September alone, which was 27 percent of total Philippine imports for the month.
Lachica said there are low-hanging fruits which could be pursued for reducing imports.
Consumables, packing materials like boxes, paper, among others can be sourced locally by consolidating the volumes to reach economies of scale.
Another initiative is to work with local group Federation of Philippine Industries to invest in technology and capital to supply raw materials otherwise imported and to convince foreign companies to move their manufacturing operations to the Philippines.
“It is not going to happen overnight, but … we (have to) start now…,” Lachica added.
