MANILA, Philippines - The country’s electronics industry is aiming to increase revenues from shipments of electronic products to as much as $112 billion by 2030.
Speaking at the Department of Trade and Industry’s Trade and Industry Development Updates held yesterday, Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI) president Dan Lachica said under their roadmap, the industry is also targeting $10 billion worth of investments and to employ a total of 24 million workers by 2030.
To achieve these targets, the value of exports of electronic products should be at $37 billion in the short-term or by 2016.
In that same year, the industry should have investments worth $3 billion and employ a total of eight million workers.
In the medium-term, or by 2022, exports receipts should increase further to $52 billion, while investments should be at a higher $5 billion and the workforce at 14 million.
Lachica said the industry can attain the targets under optimum business conditions wherein necessary support from government agencies and partnership with the academe are present.
Without support from the government and links with the academe, he said export revenues of the industry are targeted at just $52 billion by 2030, with investments amounting to $5 billion and workforce at 14 million.
Under such scenario, the value of electronic exports are targeted to be at $28 billion by 2016, while investments should amount to $2.5 billion and the workforce would be at a total of four million in that same year.
Under the same business as usual scenario, the industry aims to increase export revenues to $37 billion, raise investments to a higher $3 billion and bring the number of individuals employed to eight million by 2022.
In 2012, the value of exports of electronic products declined 5.20 percent year-on-year to $22.557 billion.
Electronic products account for the biggest share at 43 percent of the country’s total exports.
Lachica noted that among the challenges faced by the industry in attracting investments to generate export revenues and employment is the high power cost here.
“It’s (power cost) a big issue. It’s supply and demand situation. We don’t have enough supply and whatever supply we have sometimes they break down. Until the supply and demand situation is balanced, it’s hard to look at the reduction of power cost,†he said.
He also said the industry would want the government to retain the incentives being given to new investments as well as expansion activities to be able to encourage firms to pour in funds here.
As it may take time for government to provide the support needed by the industry, he said the private sector is looking for other ways to increase export revenues.
“We’re not just going to rely on manufacturing test and assembly. We want to raise the activities to higher value content in terms of research and design,†he said.
The Philippine electronics industry through the years has not gone beyond assembly and testing.