By Janine Alexis Miguel
October 25, 2024
The semiconductor industry in the Philippines is predicting 5-percent growth in 2025, a turnaround from the 10-percent contraction expected this year.
Semiconductor and Electronic Industries in the Philippines Foundation Inc. (Seipi) President Dan Lachica attributed the recovery to ongoing inventory corrections and government initiatives to draw more investments.
“We’re looking for new products, new expansions for the coming year,” Lachica told reporters on Thursday at the sidelines of the 2024 Arangkada Philippines Forum.
While Seipi maintained the industry’s projected 10-percent decline, optimism remains high among the electronics manufacturing services companies, Lachica said.
Seipi earlier said the anticipated decline in electronics exports this year may be smaller and could fall below the 10-percent mark. Lachica said demand is resuming but “is still a challenge, especially on the semiconductor side.”
The semiconductor sector comprises 70 percent of overall volume in electronics manufacturing.
In 2023, the Philippines exported $41.91 billion worth of electronic products. If the Seipi’s projection is accurate, a 10-percent decline means the country will export $37.72 billion of electronics and other related products this year.
A 5-percent rise in 2025 translates to $39.6 billion in revenues.
Lachica said a recent Seipi board meeting discussed strategies for growth and product expansion.
Latest data from the Philippine Statistics Authority showed electronic products remained the country’s top export in August 2024 at $3.57 billion, or 52.9 percent of the country’s total exports in the same period.
From January to August, electronic exports amounted to $27.45 billion, or 1 percent higher than the $27.18 billion in the same period last year.
