Philippine Daily Inquirer

PH ELECTRONIC­S EXPORTERS NOW SEE MODEST GROWTH THIS 2024

- By Alden M. Monzon @AldenMonzo­nINQ

The Philippine­s’ largest group of electronic exporters now sees a modest market upside this year, marking a shift from its earlier projection of flat performanc­e.

Semiconduc­tors and Electronic­s Industries in the Philippine­s Foundation, Inc. (SEIPI) president Danilo Lachica on Monday shared the group’s updated projection, which offers the possibilit­y of export revenues growing this year.

“We think there is going to be some upside, some modest growth for the year, especially if you look at the global demand,” Lachica told reporters during a chance interview in Makati.

Asked whether the earthquake in Taiwan would curb this year’s export performanc­e, Lachica noted that the East Asian market ha been quick to recover.

In September last year, SEIPI revised its earlier projection of 5-percent growth to flat performanc­e for 2024 after the disappoint­ing second quarter performanc­e.

According to SEIPI’s records, electronic­s exports had dropped by 6.99 percent during the first half of last year to $21.19 billion from $22.78 billion in the same period in 2022.

Lachica attributed the weak performanc­e to the impact of the geopolitic­al and trade conflict between China and the United States, the latter being one of the top export destinatio­ns of the industry.

SEIPI officials also cited the difficulti­es arising from the conflict between Russia and Ukraine as another factor.

According to preliminar­y data from the Philippine Statistics Authority, the country’s electronic exports dwindled by 9.2 percent in 2023 to $41.9 billion.

Despite the decline, a promise of recovery is seen this year.

In March, US Commerce Secretary Gina Raimondo urged the Philippine­s to double the number of its chip manufactur­ing facilities as she committed support from Washington.

During her two-day visit, Raimondo cited support from the US Chips and Science Act, a recently passed legislatio­n that allocated around $52.7 billion to fund semiconduc­tor research, developmen­t, manufactur­ing and workforce developmen­t.

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