Innovation and R&D

The Philippine semiconductors and electronics industry is the largest contributor to the country’s manufacturing sector. In 2013, the industry accounted for 41% of total exports, brought in US$ 918 million-worth of foreign and domestic investments, and employed 2.2 million workers. The potential for the industry remains high, as member firms intend to move to higher value-added manufacturing to meet global demand. These companies plan to improve current production capacities, to expand current research and development and design capabilities, and to further develop the labor force over the next several years.

The industry is working to drive up the semiconductor and electronics manufacturing index of the country by identifying customers’ needs, understand suppliers’ baseline, develop relevant capabilities, match industry supply and demand, and conduct periodic assessment of its performance. In addition, the industry recommends that the government continue with its scholarship program for operators and technicians, improving the country’s business environment, conducting R&D capability development, and aggressively promoting local industries and SMEs through investment missions abroad.

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ABOUT ELECTRONICS

The Philippine semiconductors and electronics industry specializes in manufacturing assembly, testing, packaging and distribution. Among the firms investing in the country include Texas Instruments, Toshiba Information Equipment, Inc., Amkor, HGST (A Western Digital Company), and Fairchild Semiconductor (Phil.), Inc., Analog Devices, ON Semiconductor, Cypress, Maxim, NXP, STMicroelectronics, and IMI Electronics.

As of first-quarter 2013, there are over 424 electronics firms in the Philippines. Majority of electronic firms in major hubs such as those in Baguio, Calabarzon, Cebu, Clark, and Metro Manila are declared as special economic zones. About 73% of the total number of Philippine electronics companies provide SMS services and 27% provide EMS capabilities.

The Semiconductors and Electronics Industries in the Philippines, Inc. (SEIPI) aims to strengthen the Philippines as a globally competitive business environment for semiconductor and electronics technology. It continues to enhance and promote the Philippines’ competitive advantages and growth opportunities in electronics manufacturing and technology business through Training, Research and Development, Advocacy, Information, and Networking and Services (TRAINS). The association regularly engages local suppliers, encourages member firms to participate in trade fairs, facilitates greater collaboration among large-scale, medium-scale, and small-scale companies.

In support of the industry, the Department of Science and Technology’s (DOST) established the Advanced Device and Materials Testing Laboratory (ADMATEL) to improve the industry’s current capabilities. The facility contains equipment for failure analysis and materials characterization, thereby lessening production costs and lead time for testing products abroad.

Moreover, the Philippine government and SEIPI are working to further develop the industry’s labor force, including strengthening industry-academe linkages through the promotion of more apprenticeship and immersion programs among firms and training schools.

02 FACTS AND FIGURES

Electronics exports 2008-2013, by electronics sub-group (in US$ million)

Electronics sub-group	2008	2009	2010	2011	2012	2013
Automotive electronics	810	532	380	780	218	545
Communication radar	291	393	695	338	234	206
Semiconductor components/devices	21047	15582	23832	17782	17469	17397
Consumer electronics	479	301	293	237	232	333
Control & instrumentation	135	94	72	94	420	248
Electronic data processing	5214	4932	5485	4242	3037	4497
Medical/industrial instrumentation	32	32	35	40	57	54
Office equipment	315	251	243	225	533	326
Telecommunication	261	118	78	101	526	326
TOTAL	28582	22235	31112	23860	22725	23931

Electronics imports 2008-2013, by electronics sub-group (in US$ million)

Electronics sub-group	2008	2009	2010	2011	2012	2013
Automotive electronics	29	22	23	18	16	13
Communication radar	180	140	193	370	360	511
Semiconductor components/devices	6394	5212	6861	5281	5673	4281
Consumer electronics	325	326	331	364	369	374
Control & instrumentation	134	109	130	139	133	157
Electronic data processing	2718	2195	2386	1749	1892	1454
Medical/industrial instrumentation	52	61	78	78	71	83
Office equipment	79	81	65	74	57	92
Telecommunication	910	858	807	913	1038	900
TOTAL	10820	9004	10873	8985	9610	7864