The Philippine semiconductor and electronics industry has lowered its export growth target this year to a modest five percent, lower than the initial nine percent growth target set earlier this year, on slower global demand. Danilo Lachica, president of the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI), said after the group held its First Quarter General Membership Meeting on Wednesday, March 1. The five percent growth target is also lower than the actual 6.88 percent exports growth in 2022. The industry exported $49.09 billion in 2022, a 6.88 percent growth from 2021. Its 2022 export revenue was also 62.27 percent of the $78.84 billion total Philippine commodity exports. Lachica blamed the lower growth target this year particularly to the continuing weak demand for chips, particularly for the automotive sector. The industry, however, still retained its position as the country’s top commodity exporter. It employs  over three million direct and indirect workers making it a significant driver of economic growth that can support the domestic economy and help sustain growth momentum. To improve the competitiveness and attract more foreign investors, SEIPI continues to champion issues particularly on the legislative and regulatory concerns. For the first quarter this year, Lachica said the organization devoted its effort to meeting with the Department of Trade and Industry (DTI) and Department of Finance (DOF) Secretaries as well as the Philippine Economic Zone Authority (PEZA) and BOC officials. The meeting focused discussion on the industry’s concerns and recommendations to address the low electronics industry FDI’s (Foreign Direct Investments), and high operating costs. They also raised concerns on the Bureau of Customs (BOC)’ X-Ray Selectivity System and implementation of the Electronic Tracking of Containerized Cargo (ETRACC) System, the appeal the work-from-home (WFH) arrangement for non-manufacturing departments, and the Bureau of Internal Revenue (BIR)’s imposition of the 12 percent Value-Added Tax (VAT) on constructive exporters and production support functions. Lachica explained that the organization’s technology-related initiatives are guided by the electronics industry roadmap called the Product and Technology Holistic Strategy (PATHS). The roadmap includes plans to set up an IC (Integrated Circuit) Design Training Laboratory (ICDL) and a lab-scale wafer fab. SEIPI members have identified additional products and advanced technologies to include in the roadmap and have the potential to move the industry up the global value chain. The organization will also work on the next steps with its government and other partners to establish the ICDL that will develop capability and capacity for IC Design in the industry and prototype builds. The IC Design Technical Working Group (TWG) leads the efforts on the expansion of the Philippine IC design industry. The TWG will likewise improve the access to IC Electronic Design Automation (EDA) and specific applications tools identified by the collaborating member-companies and universities. Meanwhile, the parts localization technical working group has also tapped more local suppliers and manufacturers to enhance their capacities to supply critical materials for the electronics member-companies. The linkage aims to minimize dependence on imported materials for local assembly.