Philippines Foundation, Inc. Semiconductor and Electronics Industries (SEIPI) said Philippine exports of semiconductor and electronic products could see single-digit growth this year, but uncertainty over US tariff policy is clouding the industry's outlook.
“We are expecting single-digit growth, which means anywhere from 1% to 9%,” SEIPI President Danilo C. Lachica told reporters on the sidelines of the Philippine Semiconductors and Electronics Convention and Exhibition on Tuesday.
“MyFsnow conditions are still flat [growth,] But as I said earlier, there is a positive outlook, signs of modest growth,'' he said.
Citing the latest trade data, Mr Lachika said there are signs of export growth.
“If you look at the PSA (Philippine Statistics Authority) data, it looks like we can expect that modest growth, a single-digit growth. But now, the projection for the industry is still flat,” he said.
By the end of August, exports of electronic products reached $29.48 billion, up 7.4% from a year earlier, PSA data showed. Similarly, semiconductor exports during this period increased by 4.9% year-on-year to $22.07 billion.
The SEIPI board is scheduled to meet in November to review its industry projections.
“Even though I've seen positive activity, I was hesitant to announce, 'Okay, we're going to grow,' because who knows what's going to happen. U.S. tariffs,'' Mr. LaChica said, ''it depends on Which side of the bed does Trump wake up on?
US President Donald J. Trump had previously threatened to raise regional tariffs on chips to 300%, a move expected to bring manufacturing back to the US.
Currently, the 19% tariff imposed by the US on Philippine-made goods does not cover semiconductor exports.
The US Supreme Court is set to hear oral arguments on November 5 on the legality of Mr Trump's tariffs.
“We will continue to ride the wave of zero-percent tariffs for semiconductors and some selected EMS (electronics manufacturing services) products,” Mr Lachika said.
of SEIPIFIchial said Philippine exports of electronics and semiconductors to the US have declined since the tariffs were imposed in August.
“The US Embassy called me and asked, 'Why are exports to the US declining?' I said, 'Why do you think that?'” Mr. LaChica said.
Mr Lachika said the electronics industry is looking to diversify its trade ties with the European Union (EU) and the rest of Asia to mitigate the risks of America's uncertain tariff policies.
“Regardless of the progress on tariffs, one of the strategies we are looking at is to diversify our markets, whether it's the EU or the rest of Asia,” he said.
Meanwhile, Mr Lachika said the ongoing corruption scandal involving infrastructure projects is a “major concern” for the industry as investors may reconsider expansion plans in the country.
Asked whether corruption in government was affecting investor sentiment, Mr Lachika replied: “Absolutely.” , Beatriz Marie D. Cruz
