Oct 212013

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.  

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