Philippine semiconductor export growth seen flat this year
STOCK / FILE
MANILA, Philippines — A group of semiconductor and electronics companies is expecting a relatively flat to modest export growth this year despite the possible impact of America’s tariff policy.
Danilo Lachica, president of the Semiconductor and Electronics Industries in the Philippines Foundation Inc. (Seipi), said the group maintains its earlier projection of moderate growth. This, “notwithstanding” the possible imposition of tariffs on semiconductor exports to the United States.
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“In fact, while we projected flat growth this year, we’re not predicting gloom and doom that it will decrease,” Lachica said in an interview.
“We’re still maintaining our forecast of flat, and maybe, optimistically, some modest growth, notwithstanding the US tariffs,” he added.
Aside from geopolitical uncertainties and US President Donald Trump’s tariff pronouncements, Lachica said their forecast is also anchored on technology drivers. These include Industry 4.0 (also called smart manufacturing), artificial intelligence and big data.
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‘Business as usual’
Last April, citing the growing investor interest in the Philippines, Seipi projected a slight rebound of 1 to 2 percent in 2025 following back-to-back contraction in the previous two years. There was a decline of 8 percent in 2023 and 6 percent in 2024.
Lachica said operations remained “business as usual” among semiconductor companies since they are still exempt from tariffs under the US Trade Expansion Act of 1962.
While a “lot of things can happen,” such as the outcome of the US Supreme Court’s decision on the legality of sweeping tariffs under the Trump administration, Lachica said the industry won’t feel its effect since they don’t expect its imposition this year.
“Even with the tariff, if and when it happens, the demand will still be there, I think because obviously, with all the technology demands, you can’t replace that overnight,” Lachica said.
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