The umbrella group of semiconductor and electronics companies aims to increase its already leading share in the country’s total exports by 64 percent to $70 billion as part of the government’s ambitious five-year plan to boost the industry’s competitiveness.

The Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI) is banking on the emergence of new technologies to push the value of the country’s electronic exports to $70 billion.

“Whether it's now or five years from now, the drivers of growth for the electronics industry would be new technology,” SEIPI President Danilo Lachica said in a briefing on Thursday, Oct. 2.

Under the five-year roadmap developed by the Semiconductor and Electronics Industry Advisory Council (SEIAC), the Philippines is targeting to manufacture $70 billion worth of semiconductor packaging, the majority of which is for export.

In a rapidly evolving digital era, Lachica noted that the growing popularity of artificial intelligence (AI), data centers, and renewable energy will continue to drive demand for the country’s semiconductors.

Not far off, he said, are the conventional pillars of semiconductor demand, including computers, cellphones, and automobiles.

The steady appetite for semiconductors is the main driver of SEIPI’s projection of flat growth—with some optimism for modest gains—for this year’s electronic exports.

SEIPI estimates that the industry’s exports would remain flat at $42.6 billion, despite the potential of reciprocal tariffs against semiconductors.

United States (US) President Donald Trump is threatening to impose as much as 300 percent on semiconductor imports, unless companies shift their operations to America. So far, there have been no developments to this threat.

Electronic products, including semiconductors, are the Philippines’ top export commodity.

“The overall demand in the world is increasing, notwithstanding the tariffs. And so, that causes optimism from our part,” said Lachica.

While Lachica expressed positivity about the $70-million goal, he admitted that policy shifts could quickly upend this plan.

Apart from the US tariffs, he said, natural disasters and geopolitical conditions could hamper industry growth.

Also included in SEIAC’s roadmap is the target of reaching $40 billion under electronics manufacturing services (EMS) by 2030, specifically through the assembly of electronics and integrated circuit (IC) design.

SEIAC, chaired by the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA), aims to transform the semiconductor industry from traditional assembly, test, and packaging (ATP) to advanced ATP.

“And of course we want to move into the IC design industry as well...And we said we're also looking maybe in the future at wafer fabs (fabrication),” said OSAPIEA Undersecretary Angel Ignacio.

SEIPI has long been pushing the government to build a wafer fabrication plant, as the local industry primarily relies on imported water supplies for its manufacturing needs.

While he did not quantify its impact, Lachica said the industry is losing a “significant” amount of export revenues from this gap in the industry’s production process.

He, however, said that this is not included in the five-year plan, as there’s still no concrete government effort to make this vision a reality.

“Now is not the right time to propose it, but we haven't given up on that,” Lachica said.

The SEIPI president noted the industry has been taking proactive measures to bolster its exports. A critical component in this regard, he said, is the localization of raw materials—to put it simply, reducing reliance on imports.

He said the industry has made strides in producing ₱130 million worth of localized parts, but the goal is to reach at least ₱15 billion, which could also boost job generation.

The ₱15 billion is just one percent of what the country currently imports for its semiconductor products.

Through localization, Lachica said the Philippines could increase its share in the global market to seven percent in semiconductors and five percent for EMS.

As it stands, the country supplies around five percent and one percent of semiconductors and EMS, respectively.

Supporting the $70-billion target, the SEIAC has formed three technical working groups to strengthen the industry’s overall competitiveness.

Under the Investment and Business Environment group, headed by the Department of Trade and Industry (DTI), the government aims to enhance the ease of doing business for investors.

In talent and workforce development, the target is to generate around 128,000 jobs within five years, harnessing industry-oriented education.

This technical working group is headed by the Technical Education and Skills Development Authority (TESDA), the Department of Education (DepEd), and the Commission on Higher Education (CHED).

Meanwhile, seeks to address infrastructure problems, including water, electricity, and logistics, through the infrastructure development workgroup, led by the Bases Conversion and Development Authority (BCDA).