SEIPI keeps 5-6% growth goal

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The electronics and semiconductor sector has remained confident it could attain its 5-6 percent growth target this year and hit its goal of $50 billion in 2016.

 

 

Dan Lachica, president of the Semiconductor and Electronics Industry of the Philippines Inc. (SEIPI), said at the opening of the 10th Philippine Semiconductor and Electronics Convention and Exhibition (PSECE) 2013 that the industry’s export revenue goals are still achievable despite a slump in 2012.

 

“It is safe to say that our growth target is consistent with the worldwide demand which is said earlier is 4.49 percent as quoted by the consumer electronics association of the US,” Lachica said.

 

The growth drivers, he said, can be gleaned from the consumer point of view as shown by the strong demand for smart phones and tablets.

 

“Tablets and smartphones are clearly are the winners in terms of electronic products,” he said.

 

Lachica, however, noted that there still many concerns worldwide like the crisis in Europe and the fiscal situation in the US.

 

The country’s electronics sector last year reached only $23 billion as the “snap back” assumptions of world demand from a slowdown in 2011 did not happen in 2012.

 

In March this year, electronics exports was down 22.4% to $1.8 billion from $2.3 billion a year ago. This brought the overall electronics decline in the first quarter to 30.29% but the decline has somewhere slowed down given the fact that the sector posted a 36 percent decline in February.

 

In terms of investments, there have been five to six expansions of existing electronics companies in the country in the past few months but Lachica said they are not setting any growth in investments for this year.

Electronics firms in the country as also complaining of the high cost of power.

 

“We need to find a solution for that,” he added.

 

Lachica also cited the need to level up in terms of research and development to improve the capability of the local players, which can be accomplished by networking with the Department of Science and Technology, the academe, the government and the private sector.

 

In the domestic front, SEIPI through PSECE also promotes an advocacy of its own, that is to develop the local allied and support segment of the electronics industry. The industry is export oriented, but concurrently relies heavily on imports.

 

In 2012, the total industry import value was $17 billion. This could have been a value added to the country, if only parts and materials of manufacturing electronics firms were available to be procured within the country.

 

The 10th PSECE, which is in partnership with HGST Philippines Corporation and the Philippine Economic Zone Authority (PEZA), will run until Friday, this week at the SMX Convention Center.

 

PSECE is the annual electronics trade show and convention of the leading electronic firms in the country and it suppliers. The show attracts more than 150 exhibitors while the convention is attended by thousands of industry executives in the field of engineering finance, human resources, supply chain, information and technology, environment, health and safety, facility and security, who made use of PSECE as a platform to introduce best practices in electronics manufacturing, innovation and excellence.

 

This year, PSECE aims to highlight that the electronics industry is not only strong in assembly and test, but the industry has the capability to move to the next level, as pockets of engineering design and R&D activities are already happening within the industry. With the theme “Manufacturing and R&D: Leveling Up the Philippines Capability,” PSECE convenes the industry’s key stakeholders (government, industry and academe) to understand the needs and address issues that come in the way of the Philippines becoming a manufacturing and R&D destination.

 

Notably, the Singapore Pavillion features 21 exhibitors. SEIPI is relentlessly pursuing its international counterpart organizations abroad specifically Japan, Singapore, China, and Korea. Ten Taiwanese exhibitors made exhibit reservation at PSECE but withdrew two weeks ago as a consequence of the recent diplomatic row.

 

Nevertheless, PSECE 2013 still remains its international flavor as SEIPI hosts the 5th Asia Green ICT Forum in Singapore in conjunction with the trade show. The Green ICT Forum is an annual gathering of leaders and advocates from the ICT and electronics industries with a common awareness of increasing industrial wastes detrimental to the environment, hence the need for a global scale response aiming for a low-carbon society. This advocacy gave birth to the Green ICT Forum that is being hosted by Asian countries yearly.

 

 

This year’s PSECE also features a reverse trade fair/ buyer village, an area where nine manufacturing electronic firms will feature the parts and materials they intend to procure locally.