During his live interview with ANC 24/7 on November 27, 2023, SEIPI President Dan Lachica gave the forecast for the 2023 and 2024 Philippine electronics growth. In late 2022, SEIPI predicted that the industry would grow 5% the following year. However, due to unforeseen challenges such as political and economic factors, compounded by inventory corrections, electronics exports will likely contract by 10%, or equivalent to USD 45 billion to USD 46 billion, by the end of the year. Electronics exports in Q1 contracted by 15% compared to the same period in 2023. Despite the geopolitical instability, this has improved in the following months as global demand has lifted. Should this trend continue along with the final stages of inventory corrections, the electronics industry will likely have a flat growth in 2024 from 2023.

These numbers could improve after President Ferdinand Marcos bagged USD 250 million worth of investment pledges for the electronics industry as a result of his recent trip to San Francisco for the APEC Summit. During the meeting with the Semiconductor Industry Association (SIA) and the Semiconductor Equipment Manufacturers, Inc. (SEMI), DTI Sec. Alfredo Pascual invited industry leaders to consider integrated circuit (IC) design and wafer fabrication in the Philippines.

The Philippine government is improving certain aspects of its policies, such as the incentives rationalization under the CREATE Act, challenges in doing business, and the high operating costs. However, the country also needs to explore more ways to attract investors. Some of the suggestions at the meeting with SIA and SEMI is for the country to engage with global consulting groups to update the electronics industry roadmap, and to establish its own CHIPS Act in order for the country to move up the value chain.

Watch the interview here:
https://www.youtube.com/watch?v=D85VQ_B_a2U&ab_channel=ANC24%2F7

Published : 13-Dec-2023