RP may extend export guaranty to foreign electronics firms

The government is willing to extend an export guaranty to foreign electronics firms in a bid to attract the latest technology.

This was confirmed by Trade and Industry Secretary Manuel Roxas II following the grant of an export guaranty to Sun Power Corp.

"It is actually part of our policy to give some insurance to potential investors who we want to attract here and who can serve as a catalyst," Roxas said.

He said Sun Power is an example of such an investor which is into sophisticated and high-value wafer fabrication.

Such technlogy, Roxas pointed out, is useful for the local electronics and semiconductor industry.

However, the grant of an export guaranty, Roxas qualified, is determined on a case-to-case basis.

In a related development, the electronics industry is expected to allocate between $300 million to $400 million in additional capital expenditures this year to be able to post an eight to 10 percent growth in exports, according to Norberto A. Viera, president and managing director of Texas Instruments and of the Semiconductor and Electronics Industry of the Philippines, Inc. (SEIPI).

Last year, electronics and semiconductor exports, Viera said, amounted to $2.5 billion.

Texas Instruments alone, Viera revealed is allocating $35 million this year for its capital expenditures.

The same amount, Viera said, is also reportedly being allocated by Intel Philippines.

However, the additional capital expenditures, Viera said, will be spent to replace equipment rather than to put up new plants.

The projected eight to 10 percent growth in electronics and semiconductor exports this year, Viera said, is fueled by new technology and products.

The latest technology, Viera said, is the so-called Wi-Fi technology which allows wireless connection to all appliances.