Investments in electronics surge over 10 times to $437 million in January-May

MANILA, Philippines - Investments into the electronics industry surged by more than 10 times to $437 million during the first five months of this year from only $41.34 million a year ago, the Semiconductor and Electronics Industry in the Philippine Inc. (SEIPI) said yesterday.

In a press conference, SEIPI president Ernesto Santiago said investments from January to May soared by more than 900 percent when compared to the $41.34 million recorded during the same period a year ago. The amount also surpassed the $397 million worth of investments recorded in 2008 and nearly overtook the $460 million that came in for the whole of 2009.

For the first half of the year, Santiago said they are confident that they will breach the 2009 target of $460 million. “Hopefully we can breach the $1 billion mark this year,” Santiago said.

However, the electronics industry said growth will start to slow down in the third and fourth quarter after growing by 44 percent in the first five months of the year.

“We are preparing for the softening of the market by the end of third quarter until the fourth quarter. Hopefully it does not extend until 2011,” Santiago said.

Because of the softening of the market, Santiago said it is possible that they will not be able to hit their growth target of 25 percent to 30 percent. Initially, full year target was at 20 percent.

“For the third quarter, it will be lower than expected. The growth will taper down,” Santiago noted.

Next week, Santiago sad they will be meeting with all industry players in Baguio to discuss whether they will revise the growth target for the year.

Likewise, he said that they will craft an electronics sector roadmap. During the session, he said they will identify five product technologies and five technological evolutions. After that, they will select technologies that the country can focus on.