Electronics sector eyes $37-B exports by 2016

MANILA, Philippines - The Trade department plans to hold consultations with players in the electronics and semiconductor industry on the proposed Product and Technology Roadmap that would enable the industry to transition to value-added activities.

The proposed roadmap would enable the industry to raise the annual export value of goods to as much as $37 billion in 2016 from the current level of around $23 billion. By 2022, the value of electronics exports are seen to rise by $52 billion through value-adding and by 2030, value of exports are seen to rise to $112 billion.

The Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI) expects revenues from shipments of electronic products to have reached between $20 to $21 billion in 2013 from $23 billion in 2012 as the performance of the sector remained weak.

“The electronics sector, a growth pillar of the manufacturing industry and also one of the biggest job generators, has through the years contributed significantly to the country’s aggregate exports, often dominating the majority share of export products,” said Trade undersecretary and Board of Investments (BOI) managing head Adrian S. Cristobal Jr.

“SEIPI is assured of our continued support and their plan for a supplemental roadmap will be facilitated through the mobilization of resources in collaboration with relevant government agencies,” he added.

The proposed roadmap would guide the electronics industry as it moves up the value chain, develop new growth areas and seize opportunities in Southeast Asia as free trade in the region is implemented in 2015.

The industry remains a substantial contributor to the local economy, accounting for about 43.3 percent of the total Philippine exports or $23 billion in export sales in 2012.

SEIPI president Dan Lachica said the industry is challenged by the high cost of power and imported raw materials, short product lifecycles, and low level of technology that limits operations to processing, assembly and testing.

Lachica has called for an industry wide change to promote and support research and development.

Cristobal said that the roadmap exercise determines interventions needed by the industry in terms of capacity building, research and development, and policy reform.

He said the DTI, through its Industry Roadmap Project (IRP), has been working with the Department of Science and Technology (DOST) to enhance competitiveness of the electronics industry.

In particular, the DOST provided funds for the establishment of the Advanced Device and Materials Testing Laboratory (Admatel), the Electronics Product Development Center (EPDC) and the Philippine Institute for Integrated Circuits (PIIC).

The BOI has also convened the Electronics Industry Roadmap Technical Working Group (TWG) to ensure the successful implementation of the roadmap. The TWG is composed of representatives from the electronics industry, DTI-BOI, and other relevant government agencies and partners.