Electronics firms slowing down

Published March 1, 2020, 12:00 AM

by manilabulletin_admin

By BERNIE CAHILES-MAGKILAT

The domestic electronics manufacturing industry, which accounts for 60 percent of the country’s total
exports, is slowing down operations as companies feel the pinch from delayed materials supply from
China where 30 percent of total input come from, raising likelihood of negative growth should the
COVID-19 epidemic is further prolonged.

Dan Lachica, president of the Semiconductor and Electronics Industries in the Philippines Foundation
Inc. (SEIPI), said less than 10 percent of its members’ operations have either slowed down or
shutdown certain production lines due to materials supply problem.

“SEIPI projected 5 percent growth for 2020 but we may fall short because of COVID-19. Over 30
percent of our imported materials come from China and Hong Kong,” said Lachica.

Lachica said they are looking at 5 percent growth this year but prospects look dim with prolonged
COVID-19.

“They are depleting their safety stocks,” said Lachina. He estimated that less than 10 percent of
members have been affected by supply woes.

The industry’s top imports include communication/radar, components/semiconductor devices, control

and instrumentation, telecommunication, electronic data processing, office equipment, automotive
electronics, medical/industrial instrumentation, and consumer electronics.
Philip The Philippine semiconductor and electronics industry is a significant driver of the Philippine
economy and the largest contributor to the country’s manufacturing sector.

Last year, the industry’s exports grew by 4 percent ending the year with $43.3 billion despite the raging
US-China trade war. Electronics exports account for 61 percent of total Philippine exports.

Top export markets for the country’s electronics products are Hong Kong, US, China, Singapore and
Japan. Majority are semiconductor components/devices, consumer electronics, control and
instrumentation, electronic data processing, telecommunication, among others.

The Philippine Electronics Industry is classified into 73 percent semiconductor manufacturing services
(SMS) and 27 percent electronics manufacturing services (EMS). Most of the electronics businesses in
the country operate in four key areas: Metro Manila, CALABARZON, Northern/Central Luzon and
Cebu. Electronic companies in the country practice the best known methods in manufacturing with
capabilities ranging from IC packaging, PCB Assembly and Full Product Assembly.