The Philippines electronics industry is looking at hitting $50 billion exports this year of which 70 percent or 35 percent will come from the semiconductor sector, according to the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI).
SEIPI President Dan Lachica revealed the 2023 exports growth forecast of the industry during a panel discussion on the Philippine industry at the Indo Pacific Business Forum hosted by the U.S. Trade and Development Agency (USTDA) on Thursday, Jan. 12.
The Philippine electronics panel of the Tokyo-based forum highlighted the country’s effort to scale up the industry’s participation in the global value chain through the support of the US initiative- Indo Pacific Economic Forum (IPEF). Electronics, which accounts for more than 60 percent of the country’s exports, remained highly import dependent.
Lachica cited the industry’s resilience despite challenges. He said the industry failed to operate only for two months during COVID-19 pandemic by working together with the government.
But Lachica said the domestic industry needs to move up the value chain by developing the country’s minerals like nickel, copper and cobalt, which are very crucial in achieving technologies that would support the economy and even climate change objectives.
In the same panel, Trade and Industry Secretary Alfredo E. Pascual said the Philippines is ready as an important source of critical metals that are needed for semiconductors and other clean energy requirements of the world.
Already, he said, the US IPEF can help the Philippines goal to move up the value chain through the provision of training and technical, and capacity building with partners.
One concrete example already coming soon, he said, is its negotiation with the US for a grant to a local mining company for a feasibility study on the processing of nickel ore for the production of intermediate local product - nickel sulfate or nickel hydroxide from nickel ores - that will eventually be used for battery manufacturing.
During his meeting with US Secretary of Commerce Gina Raimondo, she explained the importance for the Philippines to be part of IPEF to be able to avail of US support.
“And we're banking heavily on that so that we will be able to eventually hopefully, go up higher in the production of chips because right now we are mainly in Asia an outsource assembly, semiconductor assembly and testing,” Pascual said.
He noted that while the Philippines is a big electronics exporter, it does not have a wafer fabrication stage and still import silicone.