Investments in electronics projected to exceed $1 billion

MANILA, Philippines - Investments in the electronics industry are expected to exceed $1 billion this year with January to May investments hitting $418.53 million.

An investment of $1 billion will create 3,000 to 5,000 direct employment.

In a press conference, Arthur Young chairman of the Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI) announced that total investments for the first five months of the year has already surpassed the full year 2008 investment of only $394.29 million.

The $418.53-million investment for January to May 2010 is already near the full year investment figure of $484.16 million in 2009.

“There is no doubt that the $1 billion in investment is achievable,” Young said. The infusion, he said, will come from reinvestments. “That is not an issue. What is stopping us from getting $5 billion to $10 billion investments.”

Young said there is a need to attract new manufacturers who will infuse big amount.

He said Vietnam is getting $5 billion to $10 billion in electronics investments. “I think we can hit $10 billion if we put things in its proper perspective.”

Young said the electronics industry does not have a national strategy and a technical roadmap. SEIPI is in the process of formulating a new roadmap which will be available by August.

On the roadmap, SEIPI president Ernesto Santiago said they will present their recommendations to the next administration. He said now is the right time to push the Philippines as a good investment destination because most multinational companies would like to get a foothold on Asia.

In terms of exports, Young said personally he thinks the industry will surpass the 2008 level which will translate to a 28 percent growth. When asked if this means that the industry will be revising their 20 percent growth target for the year, Young said the official statement will be released with the road map.

Electronics Exports for March was $2.416 billion. Young said what is preventing the local industries from growing is the lack of capacity because even if there is demand, the companies do not have the capacity to meet the demand.

The electronics exports is largely made up by semiconductors with 72.38 percent followed by electronic data processing with 20.97 percent and the rest.

As of May employment for the industry was 473,000.