Electronics sector seen hitting 10% growth in 2022
The domestic electronics industry is confident it could achieve a 10 percent growth in exports this year on strong demand from the semiconductor side and inputs for digital products, particularly electric vehicles (EVs).
Ferdinand “Perry” A. Ferrer, EMS Group of Companies chairman and CEO, told reporters covering the press conference for the 48th Philippine Business Conference (PBC) where he is also the chairman, that global shortages of microchips are boosting growth for the domestic electronic companies in the country.
“I think we will achieve the 10 percent growth, the factories are full here in the Philippines. The other side on the electronics assembly depends a lot on the components that are brought in or produced. So the demand is there. If the components are available, we manufacture and assemble it. So we see again continued growth this year, and also for the year to come next year,” said Ferrer.
The Philippine electronics exports grew by 12.9 percent in 2021 and reached an all-time high of $45.92 billion. The 2021 export performance was even 6 percent higher than the pre-pandemic exports of $43.3 billion, thereby signaling a resurgence in the industry.
To show its bullishness, Ferrer said the 10 percent growth projection for the year already discounted the continuing global chain disruption that has been affecting the domestic industry.
For instance, he cited the strong demand for EVs where over 50 percent of content is already electronics. Even full-speed cars also have lots electronics components.
“So there is continued growth, you see EVs all over so hopefully we get the chance to build all these technologies in the Philippines,” he added.
“Even though we are growing, let us attract the new electronics. We have very good products now, but they will soon sunset,” he said.
With that, he said, the industry is working with government to attract investments on new technology products which will require competitive incentives.
He said the country can easily attract new electronics technologies because it has a very good base of semiconductor firms already operating here. But, he said, these firms need good incentives regime.
According to Ferrer, some electronics investments went to Vietnam and Malaysia instead of the Philippines because of incentives issue. “So, we working with government to rationalize the CREATE Law on how to further attract investments and the current administration is very open,” he said.