Electronics group downplays Trump’s ‘America First’ stance

The country’s electronics and semiconductor industry is unlikely to be shortcircuited by US President Donald Trump’s “America First” stance and it is more concerned about the United States potentially misinterpreting current policies of the Duterte administration.

Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI) president Dan Lachica told The STAR his group, composed of the biggest local and multinational firms in the country, is not worried about the impact of Trump’s statement on Philippine electronics exports.

“It will be too expensive and disruptive to move electronics manufacturing back to the US,” Lachica said yesterday.

“What could pose a bigger impact on electronics exports is if the US misconstrues that Philippine business pivots away from the US,” he noted.

According to Lachica, there is a risk of American companies and customers misinterpreting that Philippine business is pivoting away from the US.

President Duterte in recent months has opted to align the country more with the likes of China and Russia, as he had earlier expressed intent to “separate” from the US.

This resulted in some multinational semiconductor and electronics companies holding off investments into the country, while some lost orders abroad, SEIPI reported in November last year.

Lachica, however, said his group is now looking forward to a “better relationship between President Duterte and President Trump to allay the concerns.”

The SEIPI head said 10- to 12-percent of Philippine electronics exports currently go to the US. US electronics exports in 2015 amounted to about $3.5 billion.

Lachica said there are 37 US electronics companies operating in the Philippines to date.

Trump was sworn into office as the 45th US president last Friday. His pronouncements in his inaugural speech he would push for “Buy American, Hire American” or “America First” policy sent jitters all over the world.

With full year 2016 exports figures still unreported, Lachica said SEIPI remains optimistic of reaching its two to five percent growth target.

In 2015, total outbound shipment of electronics rose 7.9 percent to $28.92 billion from $26.79 billion in 2014.

Electronic products have remained the country’s top export with total receipts of $2.55 billion, accounting for more than half or 53.8 percent of the total exports revenue in November last year.