PH electronics exporters now see modest growth this 2024
MANILA, Philippines —The Philippines’ largest group of electronics exporters now sees a modest market upside this year, marking a shift from its earlier projection of a 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 has been quick to recover.
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In September last year, SEIPI revised its earlier projection of a 5-percent growth to flat performance for 2024 after the disappointing second quarter performance.
Article continues after this advertisementAccording 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.
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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.
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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.
