Electronic exports seen to hit $50 billion by 2016

MANILA, Philippines - The semiconductor and electronics industry players and the government aim to implement a four-point action plan in a bid to double-up electronics exports to $50 billion in 2016, including increasing the country’s ability to attract investments.

Ernie Santiago, president of the Semiconductor and Electronics Industries in the Philippines, Inc., said they are gearing their efforts to achieve annual investments of $2 billion by promoting the country and the great Filipino electronics workers.

He shared that several large multinationals are revisiting their long-term strategies particularly in Asian countries, and are making decisions now.

“The Philippines is in a very good situation to be part of the action. The timing is now!” he said.

The semiconductor and electronics industry attracted $2.27 billion in new investments in 2010, the highest in history. This was a whopping increase of 384 percent from a measly $470 million the previous year. In the first quarter of 2011, investments already reached $300 million.

Santiago said industry players are also developing the technology roadmap with the goal of scaling up their work capabilities to the next level. The roadmap covers manufacturing, automotive electronics, PV/solar, mass data storage and research and development (R&D).

He said the government should work to lower the cost of business in the country especially the cost of power to attract new investments.      

It also needs to create conducive business environment through provision of infrastructure facilities, peace and order, non-disruptive labor policies and maintaining current incentives, he added.

Santiago said they are optimistic about continuous industry growth in the light of strong global demand. This, despite the softness in the market brought about by the Middle East turmoil that resulted in Philippine electronic exports declining by slight 1.93 percent in the first quarter of 2011.

He expects the sector to post a strong growth in the second half of the year and achieve eight to 12 exports growth for 2011.

Electronics exports in 2010 were likewise the highest in history at $31.1 billion from previous year’s $22.20 billion.

“The electronics industry will be the primary driver of export,” he noted. “It still maintains its optimism driven by the general industry feeling that the new government of President Aquino is morally upright and is full of promise.” – PHILEXPORT News and Features