By Beatriz Marie D. Cruz, reporter
philippine export receipts Philippines Foundation, Inc. Semiconductor and Electronics Industries (SEIPI) said sales of semiconductor and electronics products are expected to grow to a record $50 billion this year despite global trade uncertainties and the ongoing conflict in the Middle East.
“At a minimum we will breach $50 billion,” SEIPI President Danilo C. Lachica told reporters on the sidelines of the ASEAN Business Environment Forum on Wednesday.
For 2026, SEIPI estimates that semiconductor and electronics exports will grow by 5% this year.
SEIPI data showed that electronics exports are expected to grow by 16.11% to $49.64 billion in 2025 from $42.75 billion in 2024.
“Last year was close to a record. It's $20 million less than our 2022 record,” Mr. LaChica said.
“Of course, there are geopolitical concerns like the Iran war and U.S. tariffs,” he said.
Mr Lachika called Iran war Not likely to have any significant impact on the industry's export growth, given that the Middle East is not a major market for the Philippines' electronics and semiconductor products.
“As of now, we don't think it will impact demand, but still, we are on the edge of our seats,” he said.
Outside North America and Asia, the country's top destinations for electronics exports include Germany and the Netherlands, he said.
Despite this, Mr Lachika said ongoing tensions in the Middle East could increase the industry's operating costs.
“There will ultimately be an impact on fuel, transportation and energy costs,” he said.
“Right now, only the cost of operations will increase, but it is not yet disrupting the supply chain,” Mr. Lachica said in mixed English and Filipino.
Global fuel shipments are currently disrupted by the closure of the Strait of Hormuz, through which about 20% of the world's oil and liquefied natural gas passes, amid the ongoing conflict between the United States, Israel and Iran.
Mr Lachika said there is still uncertainty regarding US tariff policies There is a risk for the industry this year.
US President Donald J. Trump announced in February that he would impose new 15% tariffs on US imports. This came after the US Supreme Court earlier ruled that it had overstepped its authority by imposing reciprocal tariffs.
Treasury Secretary Frederick D. Gow had earlier said that most of the country's exports – including semiconductors and key agricultural products – had already been exempted from the US Supreme Court decision.
Mr Lachika said the industry is still left out of the United States' 25% tariff on exports of artificial intelligence (AI) chips.
He said, “The good news is that we do not produce AI chips ourselves. What we produce is peripherals such as power tools and controllers that support the AI infrastructure.”
Mr Trump in January imposed a 25% tariff on some semiconductors, particularly advanced computing chips, citing national security and economic risks.
Mr. Lachica also said that recent electronics and semiconductor investors in the Philippines have been focusing on expansion, and less on new investments.
He said demand is mainly focused on automotive, components and AI peripherals.
Data from the Philippine Statistics Authority showed that exports of electronic products are expected to increase by 17% to $46 billion in 2025, while semiconductor exports will increase by 18.7% to $34.62 billion.