MANILA, Philippines – The Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI) expects the value of shipments of electronic products to contract by 10 to 12 percent this year, a revision of the previous projection of five-percent growth, amid weak demand for semiconductors from overseas markets.
SEIPI president Dan Lachica said in a press conference yesterday the group has decided to revise its forecast as the country’s exports of electronic products have declined year-on-year.
“The board has reduced its projections for the year. Whereas before, as you know, we have been projecting five percent growth by the end of 2013. Year-to-date, we are actually in the negative,” he said.
Data from the National Statistics Office showed that in 2012, the value of exports of electronic products decreased 5.20 percent to $22.557 billion from $23.795 billion in 2011.
For the January to August period, the value of electronic shipments amounted to $13.664 billion, down 13 percent from the $15.707 billion in the same period last year.
As of end-August, revenues from shipments of semiconductors or components and devices reached $10.441 billion, 11.62 percent lower than the $11.814 billion in the comparable period in 2012.
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“We see that volumes continue to be high. In fact, many of our members are not going to be shutting down during the Christmas holidays but nonetheless, that is not going to be enough to recover to a positive five percent by the end of the year,” Lachica said.
While electronic exports are seen to contract this year, the group expects shipments next year to grow by five percent based on the expected continued strength in the automotive and consumer markets.
For the January to August period, revenues from shipments of automotive electronics surged 324.51 percent to $362.75 million from the previous year’s $85.45 million.
As of end-August, consumer electronics exports were valued at $198.421 million, up 19.66 percent from the $165.824 million a year ago.
Output from new investments here are also seen to support the recovery of electronic exports next year.
Sunil Banwari, president and general manager of On Semiconductor Philippines, Inc. and SEIPI board member, the company is investing $8 million here to expand operations.
“New investments will be coming in here,” he said.
Lachica said one of Korea’s largest companies is also planning to invest here, which could generate over 5,000 new jobs.