The Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) is excited to announce its target of a 5% increase in exports for the upcoming year, driven by proactive inventory corrections and a surge in new investments.

 

SEIPI President Danilo C. Lachica shared this optimistic outlook during the 13th Arangkada Philippines Forum 2024, noting, “While we anticipate a 10% contraction this year, we are confident that our export growth will rebound to 5% next year.”

 

This projected growth reflects the resilience and adaptability of the industry, as businesses focus on launching innovative products and expanding their operations. Lachica expressed optimism that the government’s initiatives to promote investments will further enhance the introduction of cutting-edge products and business expansions in the sector.

 

Following a productive fourth-quarter meeting, SEIPI has plans for another gathering in the first quarter of 2025 to confirm their growth outlook. “We are eager to affirm our projections and discuss strategies for seizing new opportunities in the market,” he added.

 

While there are challenges ahead, particularly within the semiconductor segment—which accounts for a significant share of industry volume—there is a shared sense of hope and determination among electronic manufacturing services (EMS) providers. “The EMS sector is optimistic about future prospects, and we believe this will positively influence overall performance,” Lachica noted.

 

According to the Philippine Statistics Authority, electronic products continue to lead the country’s exports, making up 52.9% of total exports at $3.57 billion in August. Although there was an 8.2% decline compared to the same month last year, the industry has shown resilience, with exports from January to August totaling $27.45 billion—an increase of 1% from $27.19 billion the previous year. Notably, semiconductors constituted 76.6% of this figure, with a total value of $21.04 billion.

 

SEIPI’s initial projection of a 10% decline in exports reflects ongoing inventory corrections and challenges in maintaining a competitive product mix. However, the focus on innovation and strategic partnerships positions the Philippines well for future growth. Lachica pointed out that enhancing the country’s competitive edge is critical, as some companies have faced challenges in introducing new products and technologies.

 

In a promising development, the Department of Trade and Industry is optimistic that Philippine exports will exceed the targets outlined in the Philippine Development Plan (PDP) 2023-2028. The Philippine Export Development Plan (PEDP) estimates merchandise and services exports for 2024 to reach a remarkable $143.4 billion, significantly higher than the PDP’s target of $107 billion.

 

With the Development Budget Coordination Committee raising its growth projection for merchandise exports this year to 5%—up from an earlier estimate of 3%—there is a clear indication of the industry’s positive trajectory. This optimistic outlook is fueled by a stronger-than-expected performance in the first quarter and a revitalized global semiconductor market.

 

The Philippine electronics sector is poised for growth, with significant opportunities on the horizon that will strengthen trade relationships and enhance the country’s position in the global market.

 

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